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Compared to Estimates, Southwest (LUV) Q3 Earnings: A Look at Key Metrics
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Southwest Airlines (LUV - Free Report) reported $6.53 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 4.9%. EPS of $0.38 for the same period compares to $0.50 a year ago.
The reported revenue represents a surprise of -0.69% over the Zacks Consensus Estimate of $6.57 billion. With the consensus EPS estimate being $0.38, the company has not delivered EPS surprise.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Southwest performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Available seat miles (ASMs): 44,169 million versus 43,997.87 million estimated by seven analysts on average.
CASM, excluding Fuel and oil expense, special items, and profit sharing expense: 10.67 cents versus the seven-analyst average estimate of 10.76 cents.
Passenger revenue per ASM (PRASM): 13.38 cents compared to the 13.65 cents average estimate based on six analysts.
Revenue Per Available Seat Mile (RASM): 14.77 cents versus the six-analyst average estimate of 15.02 cents.
Load factor: 80.7% versus 83.7% estimated by six analysts on average.
CASM, excluding Fuel and oil expense and special items: 10.75 cents compared to the 10.88 cents average estimate based on five analysts.
Revenue passenger miles (RPMs): 35,624 million compared to the 36,660.98 million average estimate based on five analysts.
CASM, excluding special items: 14.27 cents versus 14.17 cents estimated by four analysts on average.
Passenger revenue yield per RPM: 16.6 cents compared to the 16.44 cents average estimate based on four analysts.
Operating Revenues- Passenger [$M]: $5.91 billion versus the seven-analyst average estimate of $6 billion. The reported number represents a year-over-year change of +5.3%.
Operating Revenues- Other: $569 million compared to the $564.82 million average estimate based on seven analysts. The reported number represents a change of +1.1% year over year.
Operating Revenues- Freight [$M]: $44 million compared to the $43.33 million average estimate based on seven analysts. The reported number represents a change of 0% year over year.
Shares of Southwest have returned -12% over the past month versus the Zacks S&P 500 composite's -3.4% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.
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Compared to Estimates, Southwest (LUV) Q3 Earnings: A Look at Key Metrics
Southwest Airlines (LUV - Free Report) reported $6.53 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 4.9%. EPS of $0.38 for the same period compares to $0.50 a year ago.
The reported revenue represents a surprise of -0.69% over the Zacks Consensus Estimate of $6.57 billion. With the consensus EPS estimate being $0.38, the company has not delivered EPS surprise.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Southwest performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Available seat miles (ASMs): 44,169 million versus 43,997.87 million estimated by seven analysts on average.
- CASM, excluding Fuel and oil expense, special items, and profit sharing expense: 10.67 cents versus the seven-analyst average estimate of 10.76 cents.
- Passenger revenue per ASM (PRASM): 13.38 cents compared to the 13.65 cents average estimate based on six analysts.
- Revenue Per Available Seat Mile (RASM): 14.77 cents versus the six-analyst average estimate of 15.02 cents.
- Load factor: 80.7% versus 83.7% estimated by six analysts on average.
- CASM, excluding Fuel and oil expense and special items: 10.75 cents compared to the 10.88 cents average estimate based on five analysts.
- Revenue passenger miles (RPMs): 35,624 million compared to the 36,660.98 million average estimate based on five analysts.
- CASM, excluding special items: 14.27 cents versus 14.17 cents estimated by four analysts on average.
- Passenger revenue yield per RPM: 16.6 cents compared to the 16.44 cents average estimate based on four analysts.
- Operating Revenues- Passenger [$M]: $5.91 billion versus the seven-analyst average estimate of $6 billion. The reported number represents a year-over-year change of +5.3%.
- Operating Revenues- Other: $569 million compared to the $564.82 million average estimate based on seven analysts. The reported number represents a change of +1.1% year over year.
- Operating Revenues- Freight [$M]: $44 million compared to the $43.33 million average estimate based on seven analysts. The reported number represents a change of 0% year over year.
View all Key Company Metrics for Southwest here>>>Shares of Southwest have returned -12% over the past month versus the Zacks S&P 500 composite's -3.4% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.