Southwest Airlines Earnings: Here’s Why the Stock is Rising Now

Southwest Airlines Co. (NYSE:LUV) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.09%.

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Southwest Airlines Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.07 in the quarter versus EPS of $-0.02 in the year-earlier quarter.

Revenue: Rose 2.33% to $4.08 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Southwest Airlines Co. reported adjusted EPS income of $0.07 per share. By that measure, the company beat the mean analyst estimate of $0.02. It beat the average revenue estimate of $4.08 billion.

Quoting Management: Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated,”We are pleased with the early results from revenue initiatives implemented in first quarter 2013 and are excited about the incremental benefit expected for future periods. We launched some of our new 2013 ancillary revenue streams, including selling open premium boarding positions at the gate, increasing our EarlyBird Check-In™ charge, and increasing certain other fees.”

Key Stats (on next page)…

Revenue decreased 2.13% from $4.17 billion in the previous quarter. EPS decreased 22.22% from $0.09 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.42 and has not changed. For the current year, the average estimate is a profit of $0.98, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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