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Southwest (LUV) Reports Q1 Earnings: What Key Metrics Have to Say

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For the quarter ended March 2023, Southwest Airlines (LUV - Free Report) reported revenue of $5.71 billion, up 21.6% over the same period last year. EPS came in at -$0.27, compared to -$0.32 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $5.74 billion, representing a surprise of -0.62%. The company delivered an EPS surprise of -28.57%, with the consensus EPS estimate being -$0.21.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Southwest performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Load factor: 77.6% versus 82.32% estimated by four analysts on average.
  • Passenger revenue per ASM (PRASM): 13.41 cents versus the four-analyst average estimate of 13.72 cents.
  • Available seat miles: 38062 million compared to the 37838.05 million average estimate based on four analysts.
  • Revenue Per Available Seat Mile (RASM): 14.99 cents compared to the 15.26 cents average estimate based on four analysts.
  • CASM, excluding Fuel and oil expense, special items, and profit sharing expense: 11.67 cents versus the four-analyst average estimate of 11.49 cents.
  • Revenue passenger miles: 29547 million versus 31151.54 million estimated by four analysts on average.
  • Passenger revenue yield per RPM: 17.28 cents compared to the 16.54 cents average estimate based on three analysts.
  • CASM, excluding Fuel and oil expense and special items: 11.67 cents compared to the 11.47 cents average estimate based on three analysts.
  • Operating Expense per ASM (CASM): 15.74 cents versus 15.62 cents estimated by three analysts on average.
  • Revenue- Passenger [$M]: $5.11 billion versus the four-analyst average estimate of $5.19 billion. The reported number represents a year-over-year change of +23.5%.
  • Revenue- Other: $560 million versus the four-analyst average estimate of $542.94 million. The reported number represents a year-over-year change of +8.3%.
  • Revenue- Freight [$M]: $41 million compared to the $41.62 million average estimate based on four analysts. The reported number represents a change of -2.4% year over year.
View all Key Company Metrics for Southwest here>>>

Shares of Southwest have returned -1.7% over the past month versus the Zacks S&P 500 composite's +2.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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