Back to top

Image: Bigstock

Southwest Airlines (LUV) Beats on Q2 Earnings

Read MoreHide Full Article

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 #2 (Buy), 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’ second-quarter earnings per share (on an adjusted basis) of $1.24 per share beat the Zacks Consensus Estimate of $1.20 per share. Earnings, improved 4.2% on a year over year basis.

Revenue: Southwest Airlines reported revenues of $5,744 million edged past the Zacks Consensus Estimate of $5733.2 million. Revenues increased 1.18% on a year over year basis.

Key Stats to Note: In the reported quarter, Revenue per available seat mile (RASM: a key measure of unit revenue) stood at 14.30 cents, up 1.5% year over year. The metric is expected to rise approximately 1% year-over-year in the third quarter of 2017. Unit costs, excluding fuel and oil expense, special items and profit sharing expense, are expected to increase in the 2-3% in third quarter 2017. Unit costs, excluding fuel and oil expense, special items and profit sharing expense for the fourth quarter, are expected to be in line with the year-ago levels.

Check back later for our full write up on this Southwest Airlines earnings report later!

More Stock News: Tech Opportunity Worth $386 Billion in 2017

From driverless cars to artifical intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.

Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Southwest Airlines Co. (LUV) - free report >>

Published in