Research Analysts Offer Predictions for LUV Q3 Earnings

Key Points

• Seaport Res Ptn has lowered its Q3 2025 earnings per share estimate for Southwest Airlines to ($0.20), down from a previous estimate of $0.10.
• Analysts have mixed ratings for Southwest Airlines stock, with seven sell ratings, nine hold ratings, and four buy ratings, and a consensus price target of $32.75.
• Southwest Airlines initiated a $2.00 billion stock buyback program, allowing management to reacquire up to 9.4% of its stock, indicating confidence in the company’s valuation.

Southwest Airlines Co. (NYSE:LUV - Free Report) - Research analysts at Seaport Res Ptn cut their Q3 2025 earnings per share estimates for Southwest Airlines in a research note issued on Wednesday, July 23rd. Seaport Res Ptn analyst D. Mckenzie now anticipates that the airline will earn ($0.20) per share for the quarter, down from their prior estimate of $0.10. The consensus estimate for Southwest Airlines' current full-year earnings is $1.55 per share. Seaport Res Ptn also issued estimates for Southwest Airlines' Q4 2025 earnings at $1.10 EPS.

A number of other research analysts also recently issued reports on the company. Susquehanna lowered their price target on Southwest Airlines from $34.00 to $25.00 and set a "neutral" rating on the stock in a report on Monday, April 7th. Raymond James Financial reaffirmed an "outperform" rating and set a $40.00 price target (down from $42.00) on shares of Southwest Airlines in a report on Tuesday, April 29th. Deutsche Bank Aktiengesellschaft raised Southwest Airlines from a "hold" rating to a "buy" rating and set a $40.00 price target on the stock in a report on Thursday, May 29th. Evercore ISI lowered their price target on Southwest Airlines from $40.00 to $34.00 and set an "in-line" rating on the stock in a report on Friday. Finally, Citigroup lowered their price target on Southwest Airlines from $30.00 to $23.00 and set a "sell" rating on the stock in a report on Monday, April 14th. Seven equities research analysts have rated the stock with a sell rating, nine have given a hold rating and four have assigned a buy rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $32.75.

Southwest Airlines Trading Down 0.2%

NYSE LUV opened at $33.21 on Monday. Southwest Airlines has a 12 month low of $23.58 and a 12 month high of $37.96. The stock has a market cap of $18.92 billion, a P/E ratio of 50.31, a P/E/G ratio of 5.12 and a beta of 1.21. The stock's fifty day moving average price is $33.52 and its 200-day moving average price is $31.32. The company has a current ratio of 0.56, a quick ratio of 0.49 and a debt-to-equity ratio of 0.51.

Southwest Airlines (NYSE:LUV - Get Free Report) last released its earnings results on Wednesday, July 23rd. The airline reported $0.43 EPS for the quarter, missing analysts' consensus estimates of $0.51 by ($0.08). Southwest Airlines had a return on equity of 6.27% and a net margin of 1.43%. The company had revenue of $7.24 billion during the quarter, compared to analysts' expectations of $7.30 billion. During the same period in the prior year, the company posted $0.58 earnings per share. The company's revenue was down 2.1% on a year-over-year basis.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. GAMMA Investing LLC raised its stake in shares of Southwest Airlines by 3,538.6% in the first quarter. GAMMA Investing LLC now owns 326,129 shares of the airline's stock worth $10,951,000 after buying an additional 317,166 shares during the period. Mirae Asset Global Investments Co. Ltd. raised its stake in shares of Southwest Airlines by 10.4% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 63,625 shares of the airline's stock worth $2,137,000 after buying an additional 5,981 shares during the period. Exchange Traded Concepts LLC grew its position in shares of Southwest Airlines by 7.0% during the first quarter. Exchange Traded Concepts LLC now owns 11,625 shares of the airline's stock worth $390,000 after purchasing an additional 759 shares in the last quarter. Tidal Investments LLC grew its position in shares of Southwest Airlines by 25.1% during the fourth quarter. Tidal Investments LLC now owns 55,691 shares of the airline's stock worth $1,872,000 after purchasing an additional 11,173 shares in the last quarter. Finally, State of Alaska Department of Revenue grew its position in shares of Southwest Airlines by 1.5% during the first quarter. State of Alaska Department of Revenue now owns 69,413 shares of the airline's stock worth $2,330,000 after purchasing an additional 1,035 shares in the last quarter. Institutional investors own 80.82% of the company's stock.

Insider Activity at Southwest Airlines

In related news, Director Gregg A. Saretsky acquired 3,670 shares of the firm's stock in a transaction dated Wednesday, April 30th. The shares were purchased at an average price of $27.29 per share, with a total value of $100,154.30. Following the completion of the purchase, the director directly owned 14,881 shares of the company's stock, valued at $406,102.49. This represents a 32.74% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.79% of the stock is owned by company insiders.

Southwest Airlines announced that its board has initiated a stock repurchase program on Wednesday, July 23rd that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the airline to reacquire up to 9.4% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

Southwest Airlines Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 9th. Stockholders of record on Wednesday, June 18th were paid a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 2.17%. The ex-dividend date of this dividend was Wednesday, June 18th. Southwest Airlines's dividend payout ratio (DPR) is currently 109.09%.

Southwest Airlines Company Profile

Southwest Airlines Co operates as a passenger airline company that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2023, the company operated a total fleet of 817 Boeing 737 aircraft; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.

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