Southwest Airlines (NYSE:LUV) Posts Earnings Results, Beats Estimates By $0.03 EPS

Southwest Airlines (NYSE:LUV) released its quarterly earnings data on Wednesday. The airline reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.55 by $0.03, FiscalAI reports. Southwest Airlines had a net margin of 1.38% and a return on equity of 6.39%. The firm had revenue of $7.44 billion for the quarter, compared to analysts’ expectations of $7.51 billion.

Southwest Airlines Trading Down 1.0%

Shares of Southwest Airlines stock traded down $0.40 on Wednesday, reaching $40.94. The company had a trading volume of 10,047,593 shares, compared to its average volume of 8,485,475. Southwest Airlines has a 52-week low of $23.82 and a 52-week high of $45.02. The firm’s 50 day moving average price is $39.89 and its two-hundred day moving average price is $35.01. The firm has a market cap of $21.17 billion, a PE ratio of 62.98, a PEG ratio of 0.38 and a beta of 1.16. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.42 and a current ratio of 0.49.

Southwest Airlines Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 16th. Investors of record on Friday, December 26th were issued a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 1.8%. The ex-dividend date was Friday, December 26th. Southwest Airlines’s payout ratio is 110.77%.

Institutional Investors Weigh In On Southwest Airlines

Several institutional investors have recently modified their holdings of the company. MUFG Securities EMEA plc purchased a new position in Southwest Airlines in the second quarter valued at approximately $55,000. Ossiam purchased a new position in Southwest Airlines during the 2nd quarter worth $61,000. Brown Brothers Harriman & Co. boosted its holdings in Southwest Airlines by 159.0% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 2,370 shares of the airline’s stock valued at $76,000 after purchasing an additional 1,455 shares in the last quarter. Federated Hermes Inc. purchased a new stake in Southwest Airlines during the second quarter worth about $80,000. Finally, Danske Bank A S purchased a new position in Southwest Airlines in the 3rd quarter valued at approximately $108,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the stock. Wells Fargo & Company assumed coverage on shares of Southwest Airlines in a research note on Thursday, December 18th. They issued an “equal weight” rating and a $45.00 target price on the stock. Citigroup increased their price target on shares of Southwest Airlines from $38.00 to $44.00 and gave the company a “neutral” rating in a research report on Wednesday, January 7th. Morgan Stanley upped their price objective on shares of Southwest Airlines from $48.00 to $50.00 and gave the company an “overweight” rating in a report on Thursday, January 8th. Wall Street Zen raised Southwest Airlines from a “sell” rating to a “hold” rating in a report on Saturday, October 25th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Southwest Airlines in a research note on Monday, December 29th. Six equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $42.37.

Southwest Airlines Company Profile

Southwest Airlines Co is a U.S.-based low-cost carrier that operates a point-to-point domestic and near-international airline network. Headquartered in Dallas, Texas, the company primarily flies Boeing 737 aircraft and offers no-frills, single-class service designed to keep fares competitive. Southwest’s operating model emphasizes high aircraft utilization, quick turnaround times and an open seating policy, allowing customers to board and select seats on a first-come, first-served basis.

Founded in 1967 by Herb Kelleher and Rollin King as Air Southwest Company, Southwest began commercial service in 1971, initially connecting Dallas, Houston and San Antonio.