Earnings Preview - Southwest Airlines Co. (NYSE:LUV)
By:NewsyStocks   Wednesday, January 18, 2022 11:38 AM

Southwest Airlines is expected to report earnings on Jan 19th.

In the last four quarters ended Sep 2011, the company's reported quarterly EPS exceeded analysts' consensus estimates on one occasion, met on two occasions, and missed on one occasion. Of the 2 analysts making forecasts, 1 raised and 1 lowered their forecast for the fiscal quarter ending December 2011.

I think, for the fourth quarter of 2011 (December 2011), the company is likely to report revenues of $4.12 billion, an increase of 32.2 percent over the same quarter a year ago. Increase in revenue is largely attributable to increase in traffic. The company reported that its traffic was up 3.5 percent, and 2.5 percent in October and November. However, December traffic was down by 0.3 percent. The carrier's closely-watched load factor gauge fell to 78.4 percent from 80.1 percent for December. Overall, for the fourth quarter, I expect the company to report higher passenger revenues were driven by strong load factors, revenue yields, and unit revenues. Moreover, I expect the company to report higher other revenues in the fourth quarter, compared to fourth quarter last year, largely due to the Rapid Rewards program and continued growth in EarlyBird Check-In revenues. Total operating revenues for the fourth quarter of 2011 is expected to have increased by 36.5 percent compared to the fourth quarter of 2010. Net on net, the company is likely to report EPS of $0.07, compared to $0.15 in the same quarter in the previous fiscal year. This amounts to a turnaround in profits as the company reported a net loss of $140 million, or $0.18 per share, for the third quarter ended September 30, 2011.