Southwest Airlines's Earnings Outlook
Southwest Airlines (NYSE:LUV) will release its quarterly earnings report on Thursday, 2025-07-24. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Southwest Airlines to report an earnings per share (EPS) of $0.52.
Anticipation surrounds Southwest Airlines's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Overview of Past Earnings
In the previous earnings release, the company beat EPS by $0.06, leading to a 3.68% increase in the share price the following trading session.
Here's a look at Southwest Airlines's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | -0.19 | 0.46 | 0 | 0.51 |
| EPS Actual | -0.13 | 0.56 | 0.15 | 0.58 |
| Price Change % | 4.0% | -2.0% | 1.0% | -3.0% |
Stock Performance
Shares of Southwest Airlines were trading at $37.17 as of July 22. Over the last 52-week period, shares are up 34.29%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analyst Opinions on Southwest Airlines
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Southwest Airlines.
Analysts have given Southwest Airlines a total of 6 ratings, with the consensus rating being Neutral. The average one-year price target is $34.5, indicating a potential 7.18% downside.
Understanding Analyst Ratings Among Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of United Airlines Holdings, Delta Air Lines and Alaska Air Gr, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for United Airlines Holdings, with an average 1-year price target of $104.0, suggesting a potential 179.8% upside.
- Analysts currently favor an Buy trajectory for Delta Air Lines, with an average 1-year price target of $67.0, suggesting a potential 80.25% upside.
- Analysts currently favor an Outperform trajectory for Alaska Air Gr, with an average 1-year price target of $54.67, suggesting a potential 47.08% upside.
Peer Metrics Summary
In the peer analysis summary, key metrics for United Airlines Holdings, Delta Air Lines and Alaska Air Gr are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Southwest Airlines | Neutral | 1.56% | $867M | -1.51% |
| United Airlines Holdings | Buy | 1.67% | $4.75B | 7.49% |
| Delta Air Lines | Buy | -0.06% | $5.04B | 12.95% |
| Alaska Air Gr | Outperform | 40.55% | $255M | -3.90% |
Key Takeaway:
Southwest Airlines ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. Southwest Airlines is at the bottom for Return on Equity.
Discovering Southwest Airlines: A Closer Look
Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates nearly 800 aircraft in an all-Boeing 737 fleet. Despite offering some longer routes and a few perks for business travelers, the airline predominantly specializes in short-haul, leisure flights operated in a single, open-seating cabin configuration in a point-to-point network. In late 2025, Southwest will modify its cabins to offer some seats with extra legroom and will update its ticketing process and merchandising to offer assigned seats and more fare categories including a basic economy class that will more directly compete with other airlines' offerings.
Southwest Airlines: A Financial Overview
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Southwest Airlines displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 1.56%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Net Margin: Southwest Airlines's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -2.32%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): Southwest Airlines's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -1.51%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Southwest Airlines's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -0.45% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Southwest Airlines's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.85.
To track all earnings releases for Southwest Airlines visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
