Finance

How Southwest Airlines Co. (NYSE:LUV) trades after earning announcements?

Southwest Airlines Co. (NYSE:LUV) is projected to declare fiscal first quarter financial results right before the stock market’s official open on April 27, 2017. The stock added about 13 percent in price since last results when it was at $49.46 a share. Based on the most relevant past-periods data, there is an 57.14 percent probability for this firm’s share price to go up following next quarterly results. Earnings reaction history tells us that the equity price moved up 16 times out of last 28 reported quarters. It has beaten earnings-per-share estimates 75% of the time in its last 12 earnings reports. It fell short of earnings estimates on 1 occasions, and it has met expectations 2 times.

Here’s how traders responded to LUV earnings announcements over the past few quarters.

Southwest Airlines Co. (LUV) Earnings Surprises & Reaction

Given its history, the average earnings announcement surprise was 3.81 percent over the past four quarters. Back on January 26, 2017, it posted earnings per-share earnings at $0.74 which beat the consensus $0.69 projection (positive surprise of7.25%. For the quarter, revenue came in at 5.08B versus consensus estimate of 5.03B. The stock gained 9.02 percent the session following the earnings reports were released, and on 7th day price change was 0 percent.

On October 26, 2016, it reported earnings at $0.93 a share compared with the consensus estimate of $0.88 per share (positive surprise of 5.68%). Revenue of 5.14B for that quarter was below the $5.17B analysts had expected. The stock retreated -8.46% the day following the earnings announcement, and on 7th day price change was -5.4%.

On July 21, 2016, it recorded $1.19 a share in earnings which missed the consensus estimate of $1.22 (negative surprise of -2.46%). Revenue for the quarter was $5.38B while analysts called for revenues to be $5.41B. The stock dropped -11.21% the day following the earnings data was made public, and on 7th day price change was -10.83%.

On April 21, 2016, it announced earnings per share at $0.88 versus the consensus estimate of $0.84 per share (positive surprise of 4.76%). That came on revenues of $4.83B for that period. Analysts had expected $4.81B in revenue.

Southwest Airlines Co. Earnings Estimates

As Q1 earnings announcement date approaches, Wall Street is expecting earnings per share of $0.71. The analysts’ present consensus range is $0.69-$0.75 for EPS. The market consensus range for revenue is between $4.94B and $5.09B, with an average of $5.01B.

Southwest Airlines Co. (NYSE:LUV) last ended at $54.49, sending the company’s market cap near $34.8B. The consensus 12-month price target from analysts covering the stock is $62.07. The share price has declined -8.54% from its top level in 52 weeks and dropped 9.52% this year. It recently traded in a range of $54.46-$56.18 at a volume of 9432521 shares. The recent trading ended with the price nearly -5.17 lower for the last 5 trading days, rebounding 54.86% from its 52-week low.

 

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