Impact of Earnings Reports on Major Dow Stocks Today

Market fluctuations are evident as earnings reports roll in. Major earnings surprises were noted from Southwest Airlines and UPS, influencing stock prices negatively. The labor market remains strong despite GDP growth falling short of expectations.

Date: 31-01-2025

AI Rating: 5

Earnings Per Share (EPS)
Southwest Airlines reported earnings of 56 cents per share, exceeding expectations of 45 cents, resulting in a positive earnings surprise of 24%. However, their stock is still down by 1.5% following the report. UPS also surpassed EPS expectations with earnings of $2.75 per share against $2.52 anticipated, but their shares dropped significantly by 15% due to weak guidance, particularly associated with competition from Amazon services.

Revenue Growth
Southwest Airlines posted revenues of $6.93 billion, which fell slightly short of expectations, impacting their stock negatively despite the earnings beat. UPS's revenues were down just 0.13% from estimates to $25.3 billion; however, this was overshadowed by their weak guidance and hence the drop in stock price.

Net Income
The text does not explicitly mention net income figures for the companies discussed, thus no analysis can be performed in this area.

Profit Margins
The analysis does not provide specific profit margin data for any of the companies mentioned, so this metric cannot be analyzed.

Free Cash Flow (FCF)
There is no information in the text regarding free cash flow for Southwest Airlines or UPS, thus this remains unexamined.

Return on Equity (ROE)
The text does not include any details on return on equity for the companies discussed, so analysis in this area is not applicable.

In summary, while Southwest Airlines and UPS reported strong EPS, their stocks are affected by mixed revenue outcomes and negative guidance. Investors should be cautious as these factors can lead to volatility in share prices.

Stocks: LUV UPS MA AAPL