Zacks Research Weighs in on Southwest Airlines Co.’s Q2 2024 Earnings (NYSE:LUV)

Southwest Airlines Co. (NYSE:LUV) – Equities researchers at Zacks Research cut their Q2 2024 EPS estimates for shares of Southwest Airlines in a report released on Thursday, June 27th. Zacks Research analyst S. Goswami now forecasts that the airline will post earnings per share of $0.53 for the quarter, down from their previous estimate of $0.59. The consensus estimate for Southwest Airlines’ current full-year earnings is $0.95 per share. Zacks Research also issued estimates for Southwest Airlines’ Q4 2024 earnings at $0.17 EPS, FY2024 earnings at $0.78 EPS, Q4 2025 earnings at $0.52 EPS, FY2025 earnings at $1.73 EPS and FY2026 earnings at $2.53 EPS.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings data on Thursday, April 25th. The airline reported ($0.36) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.34) by ($0.02). Southwest Airlines had a net margin of 1.59% and a return on equity of 8.91%. The firm had revenue of $6.33 billion during the quarter, compared to analyst estimates of $6.42 billion. During the same period in the previous year, the firm posted ($0.27) earnings per share. The company’s quarterly revenue was up 11.0% compared to the same quarter last year.

LUV has been the subject of a number of other research reports. Jefferies Financial Group cut shares of Southwest Airlines from a “hold” rating to an “underperform” rating and dropped their price objective for the company from $28.00 to $20.00 in a report on Monday, April 29th. Sanford C. Bernstein cut their price objective on Southwest Airlines from $27.00 to $26.00 and set a “market perform” rating on the stock in a research report on Monday, May 6th. Citigroup lifted their target price on Southwest Airlines from $27.50 to $29.00 and gave the company a “neutral” rating in a report on Monday, June 17th. HSBC started coverage on Southwest Airlines in a report on Monday, May 13th. They set a “hold” rating and a $27.80 price target on the stock. Finally, Barclays decreased their price objective on Southwest Airlines from $30.00 to $26.00 and set an “equal weight” rating for the company in a research note on Friday, April 26th. Five equities research analysts have rated the stock with a sell rating, ten have given a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $29.83.

Southwest Airlines Stock Performance

NYSE LUV opened at $28.11 on Monday. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.09 and a quick ratio of 1.02. The company has a market cap of $16.82 billion, a P/E ratio of 44.56, a P/E/G ratio of 1.88 and a beta of 1.15. The stock has a 50-day moving average of $27.73 and a two-hundred day moving average of $29.39. Southwest Airlines has a 1-year low of $21.91 and a 1-year high of $39.53.

Southwest Airlines Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 10th. Shareholders of record on Wednesday, June 19th will be issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 2.56%. The ex-dividend date is Tuesday, June 18th. Southwest Airlines’s payout ratio is 114.29%.

Hedge Funds Weigh In On Southwest Airlines

A number of institutional investors have recently modified their holdings of the business. Hexagon Capital Partners LLC increased its holdings in shares of Southwest Airlines by 374.0% in the fourth quarter. Hexagon Capital Partners LLC now owns 858 shares of the airline’s stock valued at $25,000 after purchasing an additional 677 shares during the period. Capital Advisors Ltd. LLC increased its stake in Southwest Airlines by 82.8% in the 4th quarter. Capital Advisors Ltd. LLC now owns 914 shares of the airline’s stock valued at $26,000 after buying an additional 414 shares during the period. First Horizon Advisors Inc. purchased a new position in Southwest Airlines during the 4th quarter worth $29,000. ICA Group Wealth Management LLC acquired a new stake in shares of Southwest Airlines in the 4th quarter worth $29,000. Finally, Pineridge Advisors LLC purchased a new stake in shares of Southwest Airlines in the fourth quarter valued at about $32,000. 80.82% of the stock is owned by institutional investors and hedge funds.

About Southwest Airlines

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.