Wall Street brokerages expect that Southwest Airlines Co (NYSE:LUV) will report $5.57 billion in sales for the current fiscal quarter, according to Zacks Investment Research. Five analysts have provided estimates for Southwest Airlines’ earnings. The highest sales estimate is $5.60 billion and the lowest is $5.55 billion. Southwest Airlines posted sales of $5.27 billion during the same quarter last year, which suggests a positive year over year growth rate of 5.7%. The company is expected to report its next earnings results on Thursday, October 25th.
According to Zacks, analysts expect that Southwest Airlines will report full-year sales of $21.95 billion for the current fiscal year, with estimates ranging from $21.84 billion to $22.05 billion. For the next year, analysts anticipate that the company will report sales of $23.47 billion per share, with estimates ranging from $23.18 billion to $23.96 billion. Zacks’ sales calculations are an average based on a survey of sell-side research firms that follow Southwest Airlines.
Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Thursday, July 26th. The airline reported $1.26 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.23 by $0.03. Southwest Airlines had a return on equity of 22.16% and a net margin of 16.90%. The business had revenue of $5.74 billion for the quarter, compared to analysts’ expectations of $5.75 billion. During the same period in the previous year, the business posted $1.24 EPS. The firm’s quarterly revenue was up .2% compared to the same quarter last year.
A number of brokerages recently issued reports on LUV. Zacks Investment Research upgraded Southwest Airlines from a “sell” rating to a “hold” rating in a research note on Monday, July 2nd. Tigress Financial began coverage on Southwest Airlines in a research note on Friday, May 25th. They issued a “buy” rating on the stock. Deutsche Bank lowered their price objective on Southwest Airlines from $71.00 to $66.00 and set a “buy” rating on the stock in a research note on Monday, June 11th. Citigroup lowered their price objective on Southwest Airlines from $74.00 to $67.00 and set a “buy” rating on the stock in a research note on Monday, April 30th. Finally, Stephens set a $69.00 price objective on Southwest Airlines and gave the company a “buy” rating in a research note on Friday, July 27th. Six research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company. The company presently has a consensus rating of “Buy” and an average target price of $67.38.
Southwest Airlines stock traded down $0.63 during midday trading on Friday, reaching $61.00. The stock had a trading volume of 4,147,600 shares, compared to its average volume of 5,417,076. Southwest Airlines has a 12 month low of $49.76 and a 12 month high of $66.99. The stock has a market capitalization of $34.20 billion, a P/E ratio of 17.47, a P/E/G ratio of 1.20 and a beta of 1.15. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.64 and a current ratio of 0.70.
The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 12th. Stockholders of record on Wednesday, August 22nd will be given a dividend of $0.16 per share. This represents a $0.64 annualized dividend and a dividend yield of 1.05%. The ex-dividend date of this dividend is Tuesday, August 21st. Southwest Airlines’s dividend payout ratio is presently 18.29%.
In other news, Director John T. Montford sold 430 shares of the company’s stock in a transaction dated Tuesday, August 7th. The stock was sold at an average price of $58.27, for a total transaction of $25,056.10. Following the sale, the director now directly owns 23,853 shares in the company, valued at $1,389,914.31. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Andrew M. Watterson sold 6,130 shares of the company’s stock in a transaction dated Friday, August 17th. The shares were sold at an average price of $59.28, for a total value of $363,386.40. Following the sale, the executive vice president now owns 16,597 shares in the company, valued at $983,870.16. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 11,470 shares of company stock worth $674,941. Company insiders own 0.23% of the company’s stock.
Institutional investors and hedge funds have recently made changes to their positions in the company. Boston Partners increased its position in shares of Southwest Airlines by 5.2% in the second quarter. Boston Partners now owns 8,927,411 shares of the airline’s stock worth $454,227,000 after purchasing an additional 443,918 shares during the last quarter. Bank of Montreal Can increased its position in shares of Southwest Airlines by 9.3% in the second quarter. Bank of Montreal Can now owns 5,832,599 shares of the airline’s stock worth $296,764,000 after purchasing an additional 494,484 shares during the last quarter. Thrivent Financial for Lutherans increased its position in shares of Southwest Airlines by 2.7% in the first quarter. Thrivent Financial for Lutherans now owns 4,651,542 shares of the airline’s stock worth $266,441,000 after purchasing an additional 122,372 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of Southwest Airlines by 9.9% in the second quarter. Dimensional Fund Advisors LP now owns 3,637,579 shares of the airline’s stock worth $185,076,000 after purchasing an additional 328,453 shares during the last quarter. Finally, Rockefeller Capital Management L.P. bought a new position in shares of Southwest Airlines in the first quarter worth approximately $207,785,000. Hedge funds and other institutional investors own 77.15% of the company’s stock.
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, 2017, the company operated a total of 706 Boeing 737 aircraft; and served 100 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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