Southwest Airlines LUV releases its next round of earnings this Thursday, July 22. Get the latest predictions in Benzinga's essential guide to the company's Q2 earnings report.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Based on Southwest Airlines management projections, analysts predict EPS of $0.32 on revenue of $3.88 billion. In the same quarter last year, Southwest Airlines posted a loss of $2.67 per share on sales of $1.01 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
The Wall Street estimate would represent a 88.01% increase in the company's earnings. Revenue would be up 284.92% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | -1.85 | -1.68 | -2.35 | -2.66 |
| EPS Actual | -1.72 | -1.29 | -1.99 | -2.67 |
| Revenue Estimate | 2.07 B | 2.11 B | 1.70 B | 845.26 M |
| Revenue Actual | 2.05 B | 2.01 B | 1.79 B | 1.01 B |
Want Real-Time Earnings Calendar Updates?
Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.
Stock Performance
Shares of Southwest Airlines were trading at $51.43 as of July 20. Over the last 52-week period, shares are up 60.43%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Southwest Airlines is scheduled to hold the call at 12:30:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
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