Market Overview

Earnings Outlook For Southwest Airlines


Southwest Airlines (NYSE: LUV) announces its next round of earnings this Thursday, October 22. Here is Benzinga's everything-that-matters guide for this Thursday's Q3 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings, also known as net income, is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Southwest Airlines reporting a quarterly loss of $2.35 per share on sales of $1.70 billion. Southwest Airlines earnings in the same period a year ago was $1.18 per share. Quarterly sales came in at $5.64 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Thursday, quarterly profit would be down 299.15%. Sales would be down 69.85% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -2.66 -0.41 1.10 1.08
EPS Actual -2.67 -0.15 1.16 1.18
Revenue Estimate 845.26 M 4.42 B 5.72 B 5.64 B
Revenue Actual 1.01 B 4.23 B 5.73 B 5.64 B

Stock Performance

Over the past 52-week period, shares of Southwest Airlines have declined 29.61%.


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