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Southwest (LUV) Reports Q2 Earnings: What Key Metrics Have to Say

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Southwest Airlines (LUV - Free Report) reported $7.35 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 4.5%. EPS of $0.58 for the same period compares to $1.09 a year ago.

The reported revenue represents a surprise of +0.41% over the Zacks Consensus Estimate of $7.32 billion. With the consensus EPS estimate being $0.50, the EPS surprise was +16.00%.

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: 82.6% versus the five-analyst average estimate of 82.9%.
  • Revenue passenger miles (RPMs): 38,221 million compared to the 38,284.81 million average estimate based on four analysts.
  • Available seat miles (ASMs): 46,250 million versus the four-analyst average estimate of 46,234.32 million.
  • Passenger revenue per ASM (PRASM): 14.51 cents compared to the 14.53 cents average estimate based on four analysts.
  • CASM, excluding Fuel and oil expense, special items, and profitsharing expense: 11.5 cents versus the four-analyst average estimate of 11.76 cents.
  • Revenue Per Available Seat Mile (RASM): 15.9 cents compared to the 15.95 cents average estimate based on four analysts.
  • Fuel costs per gallon, including fuel tax: 2.76 $/gal versus 2.73 $/gal estimated by three analysts on average.
  • Fuel consumed: 577 Mgal versus 572.98 Mgal estimated by three analysts on average.
  • CASM, excluding Fuel and oil expense and special items: 11.57 cents versus 11.78 cents estimated by three analysts on average.
  • Operating Revenues- Passenger [$M]: $6.71 billion versus the six-analyst average estimate of $6.70 billion. The reported number represents a year-over-year change of +4.7%.
  • Operating Revenues- Other: $597 million versus $602.12 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +2.8% change.
  • Operating Revenues- Freight [$M]: $45 million versus $49.36 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -4.3% change.
View all Key Company Metrics for Southwest here>>>

Shares of Southwest have returned -6.5% over the past month versus the Zacks S&P 500 composite's -0.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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