Q3 EPS Forecast for Southwest Airlines Decreased by Analyst

Southwest Airlines Co. (NYSE:LUV - Free Report) - Equities researchers at Seaport Res Ptn decreased their Q3 2025 earnings per share (EPS) estimates for shares of Southwest Airlines in a report released on Thursday, April 24th. Seaport Res Ptn analyst D. Mckenzie now expects that the airline will earn $0.23 per share for the quarter, down from their prior estimate of $0.45. The consensus estimate for Southwest Airlines' current full-year earnings is $1.55 per share. Seaport Res Ptn also issued estimates for Southwest Airlines' Q4 2025 earnings at $0.65 EPS, FY2025 earnings at $1.25 EPS and FY2026 earnings at $4.00 EPS.

Southwest Airlines (NYSE:LUV - Get Free Report) last issued its quarterly earnings data on Wednesday, April 23rd. The airline reported ($0.13) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.18) by $0.05. The company had revenue of $6.43 billion during the quarter, compared to the consensus estimate of $6.47 billion. Southwest Airlines had a net margin of 1.69% and a return on equity of 5.77%.

A number of other research firms also recently weighed in on LUV. Raymond James upped their price target on Southwest Airlines from $40.00 to $42.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 2nd. Melius Research raised shares of Southwest Airlines from a "sell" rating to a "hold" rating and raised their target price for the company from $28.00 to $34.00 in a research report on Thursday, March 20th. Melius upgraded shares of Southwest Airlines from a "sell" rating to a "hold" rating in a research note on Thursday, March 20th. Argus upgraded shares of Southwest Airlines from a "hold" rating to a "buy" rating and set a $35.00 price objective for the company in a research note on Tuesday, February 11th. Finally, Bank of America reaffirmed an "underperform" rating and issued a $31.00 target price (down previously from $33.00) on shares of Southwest Airlines in a research report on Friday, January 17th. Six research analysts have rated the stock with a sell rating, ten have given a hold rating and four have given a buy rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $30.54.

Southwest Airlines Stock Performance

LUV opened at $26.49 on Monday. The business's 50-day moving average price is $29.43 and its two-hundred day moving average price is $31.11. Southwest Airlines has a 1 year low of $23.58 and a 1 year high of $36.12. The company has a market capitalization of $15.20 billion, a price-to-earnings ratio of 36.79, a P/E/G ratio of 0.97 and a beta of 0.94. The company has a debt-to-equity ratio of 0.49, a current ratio of 0.92 and a quick ratio of 0.85.

Southwest Airlines Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 2nd. Investors of record on Wednesday, March 12th were issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 2.72%. The ex-dividend date of this dividend was Wednesday, March 12th. Southwest Airlines's payout ratio is 84.71%.

Insider Activity at Southwest Airlines

In other news, Director C. David Cush acquired 5,000 shares of Southwest Airlines stock in a transaction dated Wednesday, March 12th. The stock was bought at an average price of $30.03 per share, for a total transaction of $150,150.00. Following the completion of the acquisition, the director now directly owns 19,011 shares in the company, valued at approximately $570,900.33. The trade was a 35.69 % increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 0.79% of the stock is owned by company insiders.

Institutional Trading of Southwest Airlines

Several hedge funds have recently added to or reduced their stakes in the company. Colonial River Investments LLC bought a new position in Southwest Airlines during the 1st quarter worth $409,000. Golden State Wealth Management LLC increased its position in Southwest Airlines by 35.7% during the first quarter. Golden State Wealth Management LLC now owns 2,590 shares of the airline's stock worth $87,000 after acquiring an additional 681 shares during the period. CWC Advisors LLC. raised its stake in Southwest Airlines by 52.5% in the 1st quarter. CWC Advisors LLC. now owns 20,296 shares of the airline's stock worth $682,000 after purchasing an additional 6,986 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. raised its stake in Southwest Airlines by 10.4% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 63,625 shares of the airline's stock worth $2,137,000 after purchasing an additional 5,981 shares in the last quarter. Finally, Bartlett & CO. Wealth Management LLC boosted its holdings in Southwest Airlines by 23.3% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 2,659 shares of the airline's stock valued at $90,000 after purchasing an additional 503 shares during the period. 80.82% of the stock is owned by institutional investors and hedge funds.

About Southwest Airlines

Southwest Airlines Co operates as a passenger airline company that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2023, the company operated a total fleet of 817 Boeing 737 aircraft; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.

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