Southwest Airlines Co. (LUV - Free Report) is a low-cost passenger carrier that provides scheduled air transportation in the United States. The carrier also plans to expand its international operations to 50 international destinations. Earlier, it completed the acquisition of AirTran Holdings, which now operates as a wholly owned subsidiary under the name AirTran Airways.
Currently, Southwest Airlines has a Zacks Rank #3 (Hold), but that could definitely change following the carrier’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Southwest Airlines’ first-quarter earnings per share (on an adjusted basis) of 61 cents per share missed the Zacks Consensus Estimate of 62 cents per share.
Revenue: Southwest Airlines reported revenues of $4883 million missing the Zacks Consensus Estimate of $4894.1 million.
Key Stats to Note: In the reported quarter, Revenue per available seat mile (RASM: a key measure of unit revenue) stood at 13.30 cents, down 2.8% year over year. The metric is expected to rise 1%-2% year-over-year in the second quarter of 2017. Unit costs, excluding fuel and oil expense, special items and profit sharing expense, are expected to decrease significantly in the second half of 2017 till the end of the year. Unit costs for 2017, are expected to increase around 3% year-over-year unchanged from previous expectations.
Stock Price:The below par earnings report disappointed the investors. Shares of the company were down in pre-market trading at the time of writing.
Check back later for our full write up on this Southwest Airlines earnings report later!
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