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Southwest (LUV) Reports Q3 Earnings: What Key Metrics Have to Say
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Southwest Airlines (LUV - Free Report) reported $6.87 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 5.3%. EPS of $0.15 for the same period compares to $0.38 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $6.8 billion, representing a surprise of +1.08%. The company delivered an EPS surprise of +200.00%, with the consensus EPS estimate being $0.05.
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:
Load factor: 81.2% versus 81.4% estimated by four analysts on average.
Revenue Per Available Seat Mile (RASM): 15.19 cents versus 15.07 cents estimated by three analysts on average.
CASM, excluding Fuel and oil expense, special items, and profitsharing expense: 11.91 cents versus the three-analyst average estimate of 11.98 cents.
Passenger revenue yield per RPM: 17.01 cents versus 16.75 cents estimated by three analysts on average.
Passenger revenue per ASM (PRASM): 13.82 cents compared to the 13.67 cents average estimate based on three analysts.
Available seat miles (ASMs): 45.22 billion versus the three-analyst average estimate of 45.05 billion.
Revenue passenger miles (RPMs): 36.74 billion versus 36.78 billion estimated by three analysts on average.
CASM, excluding special items: 15.12 cents versus 15.24 cents estimated by two analysts on average.
Fuel costs per gallon, including fuel tax (economic): 2.55 $/gal compared to the 2.65 $/gal average estimate based on two analysts.
Operating Revenues- Passenger [$M]: $6.25 billion compared to the $6.21 billion average estimate based on six analysts. The reported number represents a change of +5.7% year over year.
Operating Revenues- Other: $577 million versus the six-analyst average estimate of $582.62 million. The reported number represents a year-over-year change of +1.4%.
Operating Revenues- Freight [$M]: $43 million compared to the $47.03 million average estimate based on six analysts. The reported number represents a change of -2.3% year over year.
Shares of Southwest have returned +8.2% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Southwest (LUV) Reports Q3 Earnings: What Key Metrics Have to Say
Southwest Airlines (LUV - Free Report) reported $6.87 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 5.3%. EPS of $0.15 for the same period compares to $0.38 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $6.8 billion, representing a surprise of +1.08%. The company delivered an EPS surprise of +200.00%, with the consensus EPS estimate being $0.05.
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:
- Load factor: 81.2% versus 81.4% estimated by four analysts on average.
- Revenue Per Available Seat Mile (RASM): 15.19 cents versus 15.07 cents estimated by three analysts on average.
- CASM, excluding Fuel and oil expense, special items, and profitsharing expense: 11.91 cents versus the three-analyst average estimate of 11.98 cents.
- Passenger revenue yield per RPM: 17.01 cents versus 16.75 cents estimated by three analysts on average.
- Passenger revenue per ASM (PRASM): 13.82 cents compared to the 13.67 cents average estimate based on three analysts.
- Available seat miles (ASMs): 45.22 billion versus the three-analyst average estimate of 45.05 billion.
- Revenue passenger miles (RPMs): 36.74 billion versus 36.78 billion estimated by three analysts on average.
- CASM, excluding special items: 15.12 cents versus 15.24 cents estimated by two analysts on average.
- Fuel costs per gallon, including fuel tax (economic): 2.55 $/gal compared to the 2.65 $/gal average estimate based on two analysts.
- Operating Revenues- Passenger [$M]: $6.25 billion compared to the $6.21 billion average estimate based on six analysts. The reported number represents a change of +5.7% year over year.
- Operating Revenues- Other: $577 million versus the six-analyst average estimate of $582.62 million. The reported number represents a year-over-year change of +1.4%.
- Operating Revenues- Freight [$M]: $43 million compared to the $47.03 million average estimate based on six analysts. The reported number represents a change of -2.3% year over year.
View all Key Company Metrics for Southwest here>>>Shares of Southwest have returned +8.2% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.