These Major Transportation Stocks are Moving After Earnings

Southwest Airlines Co. (NYSE:LUV) reported its results for the third quarter. Reported a loss of $140 million (18 cents per diluted share) in the quarter. Southwest Airlines Co. had a net income of $205 million or 27 cents per share in the year earlier quarter. Revenue rose 35.1% to $4.31 billion from the year earlier quarter. LUV reported adjusted net income of 15 cents per share. By that measure, the company beat the mean estimate of 13 cents per share. Analysts were expecting revenue of $4.23 billion.

Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, “Excluding special items, third quarter 2011 operating income was $285 million, and third quarter 2011 net income was $122 million. Total third quarter operating revenues were very strong and reached an all-time quarterly record of $4.3 billion. Passenger revenues were driven by strong load factors, revenue yields, and unit revenues, which were all third quarter records. Third quarter passenger unit revenues increased approximately six percent, compared to third quarter last year (on a combined basis as defined below). Despite the cautious economic outlook, our booking trends remain strong. Importantly, business travel has remained stable since spring.”

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).

Union Pacific Corporation (NYSE:UNP) reported its results for the third quarter. Net income for the railroad company rose to $904 million ($1.85 per share) vs. $778 million ($1.56 per share) in the same quarter a year earlier. This marks a rise of 16.2% from the year earlier quarter. Revenue rose 15.7% to $5.1 billion from the year earlier quarter. UNP beat the mean analyst estimate of $1.81 per share. Analysts were expecting revenue of $5.01 billion.

“Union Pacific delivered top and bottom line record results in the third quarter,” said Jim Young, Union Pacific chairman and chief executive officer. “We’re clearly demonstrating how Union Pacific’s diverse franchise and value-added service offerings are driving record free cash flow and improved financial returns for our shareholders.”

Competitors to Watch: Kansas City Southern (NYSE:KSU), CSX Corporation (NYSE:CSX), Norfolk Southern Corp. (NYSE:NSC), Burlington Northern Santa Fe, LLC (BNI), Canadian National Railway (NYSE:CNI), Canadian Pacific Railway Ltd. (NYSE:CP), Genesee & Wyoming Inc. (NYSE:GWR), Providence & Worcester Railroad Co. (NASDAQ:PWX), Pioneer Railcorp (PRRR), and RailAmerica, Inc. (NYSE:RA).