Analysts on Wall Street project that Southwest Airlines (LUV) will announce quarterly earnings of $0.01 per share in its forthcoming report, representing a decline of 93.3% year over year. Revenues are projected to reach $6.97 billion, increasing 1.4% from the same quarter last year.
The consensus EPS estimate for the quarter has undergone a downward revision of 5.9% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
With that in mind, let's delve into the average projections of some Southwest metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts predict that the 'Operating Revenues- Passenger [$M]' will reach $6.28 billion. The estimate indicates a year-over-year change of +0.4%.
It is projected by analysts that the 'Operating Revenues- Other' will reach $632.82 million. The estimate indicates a year-over-year change of +9.7%.
The collective assessment of analysts points to an estimated 'Operating Revenues- Freight [$M]' of $47.50 million. The estimate indicates a year-over-year change of +10.5%.
Analysts expect 'Load factor' to come in at 80.4%. The estimate is in contrast to the year-ago figure of 81.2%.
Based on the collective assessment of analysts, 'Revenue passenger miles (RPMs)' should arrive at 36.47 billion. Compared to the current estimate, the company reported 36.74 billion in the same quarter of the previous year.
Analysts' assessment points toward 'Available seat miles (ASMs)' reaching 45.30 billion. Compared to the current estimate, the company reported 45.22 billion in the same quarter of the previous year.
Analysts forecast 'Passenger revenue per ASM (PRASM)' to reach N/A. The estimate compares to the year-ago value of N/A.
According to the collective judgment of analysts, 'CASM, excluding Fuel and oil expense, special items, and profit sharing expense' should come in at N/A. Compared to the present estimate, the company reported N/A in the same quarter last year.
The consensus estimate for 'Revenue Per Available Seat Mile (RASM)' stands at N/A. Compared to the current estimate, the company reported N/A in the same quarter of the previous year.
The average prediction of analysts places 'Fuel consumed' at 545 millions of gallons. The estimate is in contrast to the year-ago figure of 562 millions of gallons.
The consensus among analysts is that 'CASM, excluding Fuel and oil expense and special items' will reach N/A. Compared to the present estimate, the company reported N/A in the same quarter last year.
The combined assessment of analysts suggests that 'CASM, excluding special items' will likely reach N/A. Compared to the current estimate, the company reported N/A in the same quarter of the previous year.
View all Key Company Metrics for Southwest here>>>
Shares of Southwest have demonstrated returns of +3.2% over the past month compared to the Zacks S&P 500 composite's +0.7% change. With a Zacks Rank #3 (Hold), LUV is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Southwest Airlines Co. (LUV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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