Wall Street analysts forecast that Southwest Airlines (LUV) will report quarterly earnings of $0.56 per share in its upcoming release, pointing to no change from the year-ago quarter. It is anticipated that revenues will amount to $7.52 billion, exhibiting an increase of 8.5% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 8.8% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
That said, let's delve into the average estimates of some Southwest metrics that Wall Street analysts commonly model and monitor.
Analysts predict that the 'Operating Revenues- Passenger [$M]' will reach $6.75 billion. The estimate indicates a change of +7.1% from the prior-year quarter.
The consensus among analysts is that 'Operating Revenues- Other' will reach $680.12 million. The estimate indicates a year-over-year change of +17.5%.
The consensus estimate for 'Operating Revenues- Freight [$M]' stands at $50.48 million. The estimate indicates a change of +12.2% from the prior-year quarter.
Analysts' assessment points toward 'Load factor' reaching 80.1%. The estimate compares to the year-ago value of 79.2%.
According to the collective judgment of analysts, 'Revenue passenger miles (RPMs)' should come in at 37.13 billion. The estimate compares to the year-ago value of 34.47 billion.
The collective assessment of analysts points to an estimated 'Available seat miles (ASMs)' of 46.05 billion. The estimate is in contrast to the year-ago figure of 43.53 billion.
The average prediction of analysts places 'Passenger revenue per ASM (PRASM)' at N/A. Compared to the present estimate, the company reported N/A in the same quarter last year.
Analysts expect 'CASM, excluding Fuel and oil expense, special items, and profit sharing expense' to come in at N/A. The estimate compares to the year-ago value of N/A.
Based on the collective assessment of analysts, 'Revenue Per Available Seat Mile (RASM)' should arrive at N/A. The estimate compares to the year-ago value of N/A.
Analysts forecast 'Fuel consumed' to reach 567 millions of gallons. The estimate is in contrast to the year-ago figure of 531 millions of gallons.
The combined assessment of analysts suggests that 'CASM, excluding Fuel and oil expense and 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.
It is projected by analysts that the 'CASM, excluding special items' will reach N/A. The estimate is in contrast to the year-ago figure of N/A.
View all Key Company Metrics for Southwest here>>>
Shares of Southwest have experienced a change of +2.2% in the past month compared to the +0.4% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), LUV is expected to outperform the overall market 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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