Can Southwest Airlines Beat These Numbers?
Jan 21st 2013 9:01AM
Updated Jan 21st 2013 9:05AM
Southwest Airlines (NYS: LUV) is expected to report Q4 earnings on Jan. 24. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Southwest Airlines's revenues will grow 2.5% and EPS will contract -11.1%.
The average estimate for revenue is $4.21 billion. On the bottom line, the average EPS estimate is $0.08.
Last quarter, Southwest Airlines booked revenue of $4.31 billion. GAAP reported sales were 0.0% lower than the prior-year quarter's $4.31 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.13. GAAP EPS were $0.02 for Q3 versus -$0.18 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 21.4%, 90 basis points worse than the prior-year quarter. Operating margin was 4.5%, 160 basis points worse than the prior-year quarter. Net margin was 0.4%, 360 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $17.13 billion. The average EPS estimate is $0.54.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,503 members out of 1,756 rating the stock outperform, and 253 members rating it underperform. Among 375 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 327 give Southwest Airlines a green thumbs-up, and 48 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Southwest Airlines is outperform, with an average price target of $11.49.
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The article Can Southwest Airlines Beat These Numbers? originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Southwest Airlines. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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