Southwest Airlines (LUV) Projected to Post Quarterly Earnings on Wednesday

Key Points

• Southwest Airlines is set to announce its Q3 2025 earnings after the market closes on October 22nd, with analysts expecting earnings of ($0.02) per share and revenue of $6.9316 billion.
• The company recently approved a share repurchase plan worth $2 billion, allowing it to buy back up to 9.4% of its shares, indicating that the board believes the stock is undervalued.
• Southwest Airlines has a current dividend payout ratio of 109.09%, following a recently issued quarterly dividend of $0.18 per share, representing an annualized yield of 2.1%.

Southwest Airlines (NYSE:LUV - Get Free Report) is expected to be announcing its Q3 2025 results after the market closes on Wednesday, October 22nd. Analysts expect the company to announce earnings of ($0.02) per share and revenue of $6.9316 billion for the quarter. Investors are encouraged to explore the company's upcoming Q3 2025 earningoverview page for the latest details on the call scheduled for Thursday, October 23, 2025 at 12:30 PM ET.

Southwest Airlines (NYSE:LUV - Get Free Report) last announced its quarterly earnings results on Tuesday, February 6th. The airline reported ($0.38) earnings per share for the quarter. Southwest Airlines had a net margin of 1.43% and a return on equity of 6.27%. The company had revenue of $6.17 billion during the quarter. On average, analysts expect Southwest Airlines to post $2 EPS for the current fiscal year and $2 EPS for the next fiscal year.

Southwest Airlines Stock Performance

LUV traded up $0.22 on Wednesday, reaching $33.64. The company had a trading volume of 4,978,981 shares, compared to its average volume of 11,104,064. The stock has a 50-day moving average price of $31.86 and a 200-day moving average price of $31.42. Southwest Airlines has a 1 year low of $23.82 and a 1 year high of $37.96. The company has a quick ratio of 0.49, a current ratio of 0.56 and a debt-to-equity ratio of 0.51. The stock has a market capitalization of $17.66 billion, a PE ratio of 50.96, a P/E/G ratio of 0.82 and a beta of 1.21.

Southwest Airlines announced that its Board of Directors has approved a share repurchase plan on Wednesday, July 23rd that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the airline to repurchase up to 9.4% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board believes its shares are undervalued.

Southwest Airlines Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 24th. Stockholders of record on Wednesday, September 3rd were issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend was Wednesday, September 3rd. Southwest Airlines's dividend payout ratio is presently 109.09%.

Insider Activity

In related news, Director Sarah Feinberg bought 1,500 shares of the stock in a transaction on Tuesday, August 5th. The shares were bought at an average cost of $30.01 per share, for a total transaction of $45,015.00. Following the completion of the transaction, the director owned 14,229 shares of the company's stock, valued at $427,012.29. This represents a 11.78% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Gregg A. Saretsky bought 3,345 shares of the stock in a transaction on Wednesday, August 6th. The shares were bought at an average price of $30.03 per share, for a total transaction of $100,450.35. Following the completion of the transaction, the director directly owned 23,644 shares of the company's stock, valued at $710,029.32. This trade represents a 16.48% increase in their position. The disclosure for this purchase can be found here. Corporate insiders own 0.79% of the company's stock.

Institutional Trading of Southwest Airlines

Large investors have recently modified their holdings of the business. MUFG Securities EMEA plc acquired a new stake in shares of Southwest Airlines in the second quarter valued at approximately $55,000. Ossiam acquired a new stake in shares of Southwest Airlines in the second quarter valued at approximately $61,000. Federated Hermes Inc. acquired a new stake in shares of Southwest Airlines in the second quarter valued at approximately $80,000. NewEdge Advisors LLC grew its position in shares of Southwest Airlines by 22.4% in the second quarter. NewEdge Advisors LLC now owns 5,118 shares of the airline's stock valued at $166,000 after purchasing an additional 935 shares during the last quarter. Finally, EverSource Wealth Advisors LLC grew its position 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 valued at $185,000 after purchasing an additional 2,408 shares during the last quarter. 80.82% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

LUV has been the subject of a number of research reports. Jefferies Financial Group upped their target price on shares of Southwest Airlines from $30.00 to $31.00 and gave the company a "hold" rating in a report on Wednesday, October 1st. Susquehanna increased their price target on shares of Southwest Airlines from $30.00 to $35.00 and gave the stock a "neutral" rating in a report on Friday, October 3rd. JPMorgan Chase & Co. increased their price target on shares of Southwest Airlines from $28.00 to $35.00 and gave the stock an "overweight" rating in a report on Friday, September 12th. Weiss Ratings reissued a "hold (c)" rating on shares of Southwest Airlines in a report on Wednesday, October 8th. Finally, Barclays increased their price target on shares of Southwest Airlines from $26.00 to $34.00 and gave the stock an "equal weight" rating in a report on Thursday, July 10th. Five investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $33.38.

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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