Q1 EPS Forecast for Southwest Airlines Boosted by Analyst

Key Points

• Zacks Research raised Southwest Airlines’ Q1 2027 EPS forecast to $0.81 from $0.66 while maintaining a “Hold” rating. The firm also projects full-year 2028 EPS of $5.83.
• Southwest’s latest quarterly results exceeded expectations, with EPS of $0.94 versus the $0.52 consensus and revenue of $8.72 billion, up 16.4% year over year.
• The stock opened at $48.93, while analysts remain broadly neutral: nine rate it Buy, nine Hold and four Sell, producing an average rating of “Hold” and a $49.55 price target. The company also declared a quarterly dividend of $0.18 per share.

Southwest Airlines Co. (NYSE:LUV - Free Report) - Stock analysts at Zacks Research raised their Q1 2027 EPS estimates for shares of Southwest Airlines in a note issued to investors on Wednesday, August 5th. Zacks Research analyst Team now expects that the airline will post earnings of $0.81 per share for the quarter, up from their previous estimate of $0.66. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Southwest Airlines' current full-year earnings is $3.49 per share. Zacks Research also issued estimates for Southwest Airlines' Q2 2027 earnings at $1.16 EPS, Q3 2027 earnings at $1.04 EPS, Q1 2028 earnings at $1.24 EPS, Q2 2028 earnings at $1.29 EPS and FY2028 earnings at $5.83 EPS.

Southwest Airlines (NYSE:LUV - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.52 by $0.42. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%.The firm had revenue of $8.72 billion during the quarter, compared to the consensus estimate of $8.58 billion. During the same period in the prior year, the firm earned $0.43 EPS. The firm's quarterly revenue was up 16.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS.

Several other brokerages also recently commented on LUV. HSBC upgraded Southwest Airlines from a "reduce" rating to a "hold" rating and raised their target price for the company from $24.40 to $36.10 in a report on Friday, April 24th. Wells Fargo & Company upped their price target on Southwest Airlines from $44.00 to $50.00 and gave the stock an "equal weight" rating in a report on Tuesday, June 30th. Argus lowered their price objective on shares of Southwest Airlines from $55.00 to $45.00 and set a "buy" rating for the company in a research report on Friday, April 24th. BNP Paribas Exane lifted their price objective on shares of Southwest Airlines from $24.00 to $33.00 and gave the company an "underperform" rating in a research note on Tuesday, April 21st. Finally, Jefferies Financial Group boosted their target price on shares of Southwest Airlines from $44.00 to $50.00 and gave the stock a "hold" rating in a research report on Wednesday, July 1st. Nine research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $49.55.

Southwest Airlines Trading Up 0.5%

Shares of LUV opened at $48.93 on Thursday. Southwest Airlines has a 12 month low of $28.98 and a 12 month high of $55.11. The stock's 50-day moving average is $46.97 and its two-hundred day moving average is $44.49. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42. The stock has a market cap of $23.94 billion, a PE ratio of 30.02, a P/E/G ratio of 0.43 and a beta of 1.14.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. AQR Capital Management LLC raised its position in shares of Southwest Airlines by 100.6% in the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline's stock valued at $1,303,000 after purchasing an additional 19,729 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Southwest Airlines by 5.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline's stock valued at $2,050,000 after buying an additional 3,141 shares during the last quarter. Empowered Funds LLC grew its position in shares of Southwest Airlines by 7.6% during the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline's stock worth $250,000 after buying an additional 527 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of Southwest Airlines by 73.4% in the second quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline's stock worth $185,000 after buying an additional 2,408 shares during the last quarter. Finally, First Trust Advisors LP increased its stake in shares of Southwest Airlines by 47.4% in the second quarter. First Trust Advisors LP now owns 307,602 shares of the airline's stock worth $9,979,000 after buying an additional 98,986 shares during the last quarter. Hedge funds and other institutional investors own 80.82% of the company's stock.

Southwest Airlines Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend is Thursday, September 3rd. Southwest Airlines's payout ratio is presently 44.17%.

Southwest Airlines Company Profile

Southwest Airlines Co is a U.S.-based low-cost carrier that operates a point-to-point domestic and near-international airline network. Headquartered in Dallas, Texas, the company primarily flies Boeing 737 aircraft and offers no-frills, single-class service designed to keep fares competitive. Southwest's operating model emphasizes high aircraft utilization, quick turnaround times and an open seating policy, allowing customers to board and select seats on a first-come, first-served basis.

Founded in 1967 by Herb Kelleher and Rollin King as Air Southwest Company, Southwest began commercial service in 1971, initially connecting Dallas, Houston and San Antonio.

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