Research Analysts Set Expectations for Southwest Airlines Co.’s Q4 2024 Earnings (NYSE:LUV)

Southwest Airlines Co. (NYSE:LUV) – Analysts at Seaport Res Ptn increased their Q4 2024 EPS estimates for Southwest Airlines in a research note issued to investors on Friday, April 26th. Seaport Res Ptn analyst D. Mckenzie now anticipates that the airline will post earnings of $0.85 per share for the quarter, up from their prior forecast of $0.70. The consensus estimate for Southwest Airlines’ current full-year earnings is $1.45 per share.

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

Several other research analysts have also recently weighed in on the company. TD Cowen lowered their target price on Southwest Airlines from $26.00 to $25.00 and set a “hold” rating on the stock in a report on Friday. Argus upgraded Southwest Airlines from a “hold” rating to a “buy” rating and set a $40.00 price target on the stock in a report on Tuesday, March 12th. UBS Group assumed coverage on shares of Southwest Airlines in a report on Wednesday, March 20th. They issued a “buy” rating and a $36.00 price objective for the company. Susquehanna reduced their target price on shares of Southwest Airlines from $30.00 to $27.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 9th. Finally, Raymond James reissued an “outperform” rating and issued a $30.00 price target (down previously from $33.00) on shares of Southwest Airlines in a research note on Friday. Five research analysts have rated the stock with a sell rating, eight have issued a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $30.71.

Southwest Airlines Price Performance

Southwest Airlines stock opened at $26.84 on Monday. The company has a fifty day simple moving average of $30.20 and a 200-day simple moving average of $28.57. The company has a quick ratio of 1.02, a current ratio of 1.09 and a debt-to-equity ratio of 0.78. The firm has a market capitalization of $16.06 billion, a price-to-earnings ratio of 42.60, a PEG ratio of 0.99 and a beta of 1.15. Southwest Airlines has a 52-week low of $21.91 and a 52-week high of $39.53.

Hedge Funds Weigh In On Southwest Airlines

A number of institutional investors and hedge funds have recently made changes to their positions in LUV. Gradient Investments LLC grew its holdings in Southwest Airlines by 37.8% during the 4th quarter. Gradient Investments LLC now owns 378,428 shares of the airline’s stock worth $10,929,000 after acquiring an additional 103,834 shares in the last quarter. Raymond James & Associates grew its stake in shares of Southwest Airlines by 32.4% during the fourth quarter. Raymond James & Associates now owns 506,762 shares of the airline’s stock worth $14,635,000 after purchasing an additional 124,054 shares in the last quarter. Charles Schwab Investment Management Inc. increased its holdings in Southwest Airlines by 0.8% in the third quarter. Charles Schwab Investment Management Inc. now owns 3,077,158 shares of the airline’s stock valued at $83,299,000 after buying an additional 23,715 shares during the last quarter. Nordea Investment Management AB raised its stake in Southwest Airlines by 24.8% in the third quarter. Nordea Investment Management AB now owns 823,779 shares of the airline’s stock valued at $22,506,000 after buying an additional 163,544 shares in the last quarter. Finally, Advisor Resource Council lifted its holdings in Southwest Airlines by 53.7% during the 4th quarter. Advisor Resource Council now owns 14,826 shares of the airline’s stock worth $428,000 after buying an additional 5,178 shares during the last quarter. 80.82% of the stock is owned by institutional investors and hedge funds.

Southwest Airlines Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, March 27th. Shareholders of record on Wednesday, March 6th were given a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 2.68%. The ex-dividend date of this dividend was Tuesday, March 5th. Southwest Airlines’s dividend payout ratio is currently 114.29%.

Southwest Airlines Company Profile

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.