Zacks Research Issues Pessimistic Outlook for LUV Earnings

Southwest Airlines Co. (NYSE:LUV) – Analysts at Zacks Research decreased their Q2 2025 earnings per share estimates for shares of Southwest Airlines in a research report issued on Thursday, February 13th. Zacks Research analyst S. Goswami now forecasts that the airline will earn $0.80 per share for the quarter, down from their prior forecast of $0.81. The consensus estimate for Southwest Airlines’ current full-year earnings is $1.59 per share. Zacks Research also issued estimates for Southwest Airlines’ Q1 2026 earnings at $0.29 EPS, Q2 2026 earnings at $0.81 EPS and FY2027 earnings at $3.95 EPS.

A number of other brokerages have also commented on LUV. Bank of America reiterated an “underperform” rating and issued a $31.00 price objective (down from $33.00) on shares of Southwest Airlines in a research report on Friday, January 17th. Barclays increased their price target on Southwest Airlines from $32.00 to $35.00 and gave the company an “equal weight” rating in a research note on Friday, December 6th. StockNews.com raised Southwest Airlines from a “sell” rating to a “hold” rating in a research note on Monday, October 28th. Morgan Stanley reaffirmed an “overweight” rating and set a $42.00 price objective on shares of Southwest Airlines in a research note on Wednesday, December 11th. Finally, TD Cowen raised their price objective on Southwest Airlines from $25.00 to $28.00 and gave the stock a “hold” rating in a research note on Friday, December 6th. Six equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and four have issued a buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $31.78.

Southwest Airlines Stock Up 0.9 %

Shares of LUV opened at $30.21 on Monday. The firm has a market capitalization of $17.90 billion, a price-to-earnings ratio of 41.95, a PEG ratio of 0.97 and a beta of 1.14. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.85 and a current ratio of 0.92. The business’s fifty day moving average price is $32.44 and its two-hundred day moving average price is $30.65. Southwest Airlines has a 52 week low of $23.58 and a 52 week high of $36.12.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings results on Thursday, January 30th. The airline reported $0.56 EPS for the quarter, topping analysts’ consensus estimates of $0.45 by $0.11. Southwest Airlines had a return on equity of 5.77% and a net margin of 1.69%.

Hedge Funds Weigh In On Southwest Airlines

Several hedge funds have recently modified their holdings of LUV. Franklin Resources Inc. grew its holdings in shares of Southwest Airlines by 46.2% in the 3rd quarter. Franklin Resources Inc. now owns 30,082,719 shares of the airline’s stock valued at $932,894,000 after acquiring an additional 9,504,201 shares in the last quarter. Jacobs Levy Equity Management Inc. grew its holdings in shares of Southwest Airlines by 608.5% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 3,623,333 shares of the airline’s stock valued at $107,359,000 after acquiring an additional 3,111,946 shares in the last quarter. Mizuho Securities USA LLC grew its holdings in shares of Southwest Airlines by 6,414.5% in the 3rd quarter. Mizuho Securities USA LLC now owns 3,006,000 shares of the airline’s stock valued at $89,068,000 after acquiring an additional 2,959,857 shares in the last quarter. National Bank of Canada FI grew its holdings in shares of Southwest Airlines by 1,327.7% in the 4th quarter. National Bank of Canada FI now owns 2,840,529 shares of the airline’s stock valued at $95,499,000 after acquiring an additional 2,641,564 shares in the last quarter. Finally, Sound Shore Management Inc. CT bought a new position in Southwest Airlines during the fourth quarter worth about $85,262,000. Institutional investors own 80.82% of the company’s stock.

Insider Buying and Selling at Southwest Airlines

In other news, insider Linda B. Rutherford sold 3,849 shares of the firm’s stock in a transaction dated Friday, December 6th. The stock was sold at an average price of $34.40, for a total value of $132,405.60. Following the completion of the transaction, the insider now owns 89,376 shares in the company, valued at $3,074,534.40. This trade represents a 4.13 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.33% of the company’s stock.

Southwest Airlines Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 2nd. Shareholders of record on Wednesday, March 12th will be paid a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 2.38%. The ex-dividend date is Wednesday, March 12th. Southwest Airlines’s dividend payout ratio is 100.00%.

Southwest Airlines Company Profile

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.