What is Zacks Research’s Estimate for LUV FY2025 Earnings?

Southwest Airlines Co. (NYSE:LUV) – Analysts at Zacks Research boosted their FY2025 EPS estimates for shares of Southwest Airlines in a research report issued on Wednesday, November 5th. Zacks Research analyst Team now expects that the airline will post earnings of $1.09 per share for the year, up from their prior forecast of $1.04. The consensus estimate for Southwest Airlines’ current full-year earnings is $1.55 per share. Zacks Research also issued estimates for Southwest Airlines’ Q1 2026 earnings at $0.31 EPS, Q3 2026 earnings at $0.22 EPS, FY2026 earnings at $2.52 EPS, Q1 2027 earnings at $0.30 EPS and Q2 2027 earnings at $1.06 EPS.

Several other analysts also recently commented on the company. Evercore ISI upped their price objective on Southwest Airlines from $34.00 to $35.00 and gave the company an “in-line” rating in a research note on Monday, September 29th. Wall Street Zen raised Southwest Airlines from a “sell” rating to a “hold” rating in a report on Saturday, October 25th. Jefferies Financial Group upped their price target on Southwest Airlines from $30.00 to $31.00 and gave the stock a “hold” rating in a research note on Wednesday, October 1st. JPMorgan Chase & Co. increased their price target on Southwest Airlines from $35.00 to $36.00 and gave the stock an “underweight” rating in a report on Friday, October 24th. Finally, Susquehanna boosted their price objective on shares of Southwest Airlines from $30.00 to $35.00 and gave the company a “neutral” rating in a research note on Friday, October 3rd. Four equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Reduce” and a consensus target price of $33.38.

Southwest Airlines Price Performance

Shares of LUV opened at $32.70 on Monday. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.42 and a current ratio of 0.49. Southwest Airlines has a fifty-two week low of $23.82 and a fifty-two week high of $37.96. The firm has a 50-day simple moving average of $32.10 and a 200-day simple moving average of $32.20. The company has a market capitalization of $16.91 billion, a price-to-earnings ratio of 50.31, a price-to-earnings-growth ratio of 0.75 and a beta of 1.23.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings data on Tuesday, February 6th. The airline reported ($0.38) earnings per share (EPS) for the quarter. The business had revenue of $6.17 billion for the quarter. Southwest Airlines had a return on equity of 6.39% and a net margin of 1.38%.

Southwest Airlines declared that its Board of Directors has authorized a share buyback program on Wednesday, July 23rd that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the airline to purchase up to 9.4% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Elevation Point Wealth Partners LLC acquired a new stake in shares of Southwest Airlines in the 2nd quarter worth approximately $25,000. Quent Capital LLC acquired a new stake in Southwest Airlines in the third quarter valued at $27,000. Corsicana & Co. purchased a new position in shares of Southwest Airlines in the third quarter valued at $27,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of Southwest Airlines during the 2nd quarter worth $31,000. Finally, Pandora Wealth Inc. purchased a new stake in shares of Southwest Airlines in the 1st quarter worth about $34,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

Southwest Airlines Company Profile

Southwest Airlines Co operates as a passenger airline company that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2023, the company operated a total fleet of 817 Boeing 737 aircraft; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.