Southwest Airlines Co. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Southwest Airlines Co. (NYSE:LUV) will unveil its latest earnings on Thursday, August 4, 2011. Southwest Airlines Co. is a passenger airline that provides air transportation in the United States. Delta Air Lines, Inc. Earnings Cheat Sheet: Profit Slides>>

Southwest Airlines Co. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 21 cents per share, a decline of 27.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 22 cents. Between one and three months ago, the average estimate moved up, but has dropped from 23 cents during the last month. For the year, analysts are projecting net income of 64 cents per share, a decline of 11.1% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the first quarter, the company reported profit of 3 cents per share versus a mean estimate of net income of 3 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 0 cents.

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Wall St. Revenue Expectations: On average, analysts predict $4.17 billion in revenue this quarter, a rise of 31.5% from the year ago quarter. Analysts are forecasting total revenue of $16.01 billion for the year, a rise of 32.3% from last year’s revenue of $12.1 billion.

Analyst Ratings: Analysts are bullish on this stock with nine analysts rating it as a buy, none rating it as a sell and five rating it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 18.4%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 21.1% from the year earlier quarter.

Competitors to Watch: AirTran Holdings, Inc. (NYSE:AAI), JetBlue Airways Corp. (NASDAQ:JBLU), Delta Air Lines, Inc. (NYSE:DAL), AMR Corporation (NYSE:AMR), US Airways Group, Inc. (NYSE:LCC), Allegiant Travel Company (NASDAQ:ALGT), Republic Airways Hldgs. Inc. (NASDAQ:RJET), SkyWest, Inc. (NASDAQ:SKYW), Alaska Air Group, Inc. (NYSE:ALK), and United Continental Hldgs., Inc. (NYSE:UAL).

Stock Price Performance: During May 4, 2011 to July 29, 2011, the stock price had fallen $1.67 (-14.4%) from $11.63 to $9.96. The stock price saw one of its best stretches over the last year between February 2, 2011 and February 11, 2011 when shares rose for eight-straight days, rising 7.1% (+82 cents) over that span. It saw one of its worst periods between July 19, 2011 and July 28, 2011 when shares fell for eight-straight days, falling 7.5% (-79 cents) over that span. Shares are down $3.01 (-23.2%) year to date.

(Source: Xignite Financials)

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