Equities research analysts predict that Southwest Airlines Co (NYSE:LUV) will announce $5.64 billion in sales for the current quarter, Zacks Investment Research reports. Nine analysts have issued estimates for Southwest Airlines’ earnings, with the highest sales estimate coming in at $5.70 billion and the lowest estimate coming in at $5.58 billion. Southwest Airlines posted sales of $5.58 billion in the same quarter last year, which would indicate a positive year over year growth rate of 1.1%. The business is scheduled to report its next quarterly earnings report before the market opens on Thursday, October 24th.
On average, analysts expect that Southwest Airlines will report full-year sales of $22.48 billion for the current financial year, with estimates ranging from $22.38 billion to $22.57 billion. For the next year, analysts forecast that the business will post sales of $24.07 billion, with estimates ranging from $23.67 billion to $25.24 billion. Zacks Investment Research’s sales calculations are an average based on a survey of sell-side research firms that that provide coverage for Southwest Airlines.
Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Thursday, July 25th. The airline reported $1.37 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.35 by $0.02. Southwest Airlines had a return on equity of 24.12% and a net margin of 10.73%. The company had revenue of $5.91 billion during the quarter, compared to the consensus estimate of $5.94 billion. During the same period last year, the business earned $1.26 EPS. The business’s quarterly revenue was up 2.9% on a year-over-year basis.
A number of brokerages recently weighed in on LUV. Morgan Stanley raised their price objective on Southwest Airlines from $60.00 to $63.00 and gave the company an “overweight” rating in a research note on Thursday. Berenberg Bank began coverage on Southwest Airlines in a research note on Friday, September 6th. They issued a “hold” rating and a $57.00 price objective on the stock. Zacks Investment Research raised Southwest Airlines from a “sell” rating to a “hold” rating and set a $59.00 price objective on the stock in a research note on Monday, September 16th. Wolfe Research raised Southwest Airlines from a “peer perform” rating to an “outperform” rating and set a $57.00 price objective on the stock in a research note on Friday, August 16th. Finally, Argus downgraded Southwest Airlines from a “buy” rating to a “hold” rating in a research note on Tuesday, August 13th. Two investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and eight have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus price target of $57.95.
Several hedge funds have recently bought and sold shares of LUV. Global Wealth Management Investment Advisory Inc. grew its stake in shares of Southwest Airlines by 242.8% in the second quarter. Global Wealth Management Investment Advisory Inc. now owns 713 shares of the airline’s stock worth $36,000 after purchasing an additional 505 shares in the last quarter. American National Bank bought a new position in Southwest Airlines during the third quarter valued at about $54,000. Doyle Wealth Management bought a new position in Southwest Airlines during the second quarter valued at about $58,000. Westside Investment Management Inc. bought a new position in Southwest Airlines during the second quarter valued at about $60,000. Finally, Clear Perspective Advisors LLC bought a new position in Southwest Airlines during the second quarter valued at about $60,000. 82.01% of the stock is currently owned by institutional investors and hedge funds.
Shares of LUV traded up $0.65 during midday trading on Friday, reaching $54.32. 89,364 shares of the stock were exchanged, compared to its average volume of 3,981,138. Southwest Airlines has a 12-month low of $44.28 and a 12-month high of $60.86. The firm has a 50 day simple moving average of $53.21 and a 200-day simple moving average of $52.02. The company has a quick ratio of 0.59, a current ratio of 0.64 and a debt-to-equity ratio of 0.37. The company has a market cap of $28.50 billion, a price-to-earnings ratio of 12.79, a P/E/G ratio of 1.39 and a beta of 1.48.
The company also recently declared a quarterly dividend, which was paid on Wednesday, September 11th. Investors of record on Wednesday, August 21st were given a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 1.33%. The ex-dividend date was Tuesday, August 20th. Southwest Airlines’s dividend payout ratio is currently 16.98%.
About Southwest Airlines
Southwest Airlines Co operates a passenger airline that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2018, the company operated a total of 750 Boeing 737 aircraft; and served 99 destinations in 40 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as 10 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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