Southwest Airlines Shows Strong Earnings Potential Ahead

Southwest Airlines (LUV) is positioned well to maintain its earnings beat streak. With a remarkable average surprise of 108% over two quarters, this airline stands out as a promising investment ahead of its January earnings report.

Date: 01-01-2025

AI Rating: 7

Earnings Per Share (EPS)
Southwest Airlines has demonstrated a strong performance in its earnings per share (EPS) in the last two reported quarters. The most recent quarter saw earnings of $0.15 per share compared to an estimate of $0.05, resulting in an impressive surprise of 200%. In the prior quarter, the company exceeded expectations by reporting earnings of $0.58 per share against an estimate of $0.50, marking a 16% surprise.

Recent Estimates and Earnings ESP
This consistent ability to surpass earnings estimates has led to upward revisions in analysts' forecasts for the company. Currently, the Earnings ESP for Southwest stands at +2.89%, indicating a positive sentiment from analysts regarding the company's earnings prospects. This combination of a positive Earnings ESP and a Zacks Rank of #1 (Strong Buy) strengthens the case for another earnings beat in the upcoming report expected on January 30, 2025.

Conclusion
Given the combination of strong historical performance in earnings, positive sentiment from analysts reflected in the Earnings ESP, and a solid Zacks Rank, investors may find Southwest Airlines to be a compelling option ahead of its next earnings report.

Stocks: LUV