Zacks Research Analysts Increase Earnings Estimates for LUV

Southwest Airlines Co. (NYSE:LUV) – Analysts at Zacks Research boosted their Q1 2027 earnings per share (EPS) estimates for Southwest Airlines in a report issued on Wednesday, August 5th. Zacks Research analyst Team now anticipates that the airline will post earnings of $0.81 per share for the quarter, up from their previous forecast of $0.66. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Southwest Airlines’ current full-year earnings is $3.49 per share. Zacks Research also issued estimates for Southwest Airlines’ Q2 2027 earnings at $1.16 EPS, Q3 2027 earnings at $1.04 EPS, Q1 2028 earnings at $1.24 EPS, Q2 2028 earnings at $1.29 EPS and FY2028 earnings at $5.83 EPS.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.52 by $0.42. The firm had revenue of $8.72 billion for the quarter, compared to analysts’ expectations of $8.58 billion. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%.Southwest Airlines’s revenue for the quarter was up 16.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.43 earnings per share. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS.

LUV has been the subject of a number of other research reports. Bank of America lifted their price objective on shares of Southwest Airlines from $40.00 to $45.00 and gave the stock an “underperform” rating in a report on Wednesday, July 1st. Morgan Stanley lifted their price target on shares of Southwest Airlines from $60.00 to $65.00 and gave the company an “overweight” rating in a report on Monday, July 6th. Evercore increased their price objective on shares of Southwest Airlines from $44.00 to $52.00 in a research note on Thursday, June 25th. BMO Capital Markets raised their target price on shares of Southwest Airlines from $58.50 to $60.00 and gave the stock an “outperform” rating in a report on Friday, July 24th. Finally, Jefferies Financial Group lifted their target price on Southwest Airlines from $44.00 to $50.00 and gave the company a “hold” rating in a research note on Wednesday, July 1st. Nine equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $49.55.

Southwest Airlines Price Performance

Shares of NYSE LUV opened at $48.93 on Thursday. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.54. The company has a market capitalization of $23.94 billion, a price-to-earnings ratio of 30.02, a price-to-earnings-growth ratio of 0.43 and a beta of 1.14. Southwest Airlines has a twelve month low of $28.98 and a twelve month high of $55.11. The business has a 50 day simple moving average of $46.97 and a 200-day simple moving average of $44.49.

Hedge Funds Weigh In On Southwest Airlines

Several institutional investors have recently modified their holdings of the company. AQR Capital Management LLC increased its holdings in shares of Southwest Airlines by 100.6% in the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock worth $1,303,000 after acquiring an additional 19,729 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Southwest Airlines by 5.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock valued at $2,050,000 after purchasing an additional 3,141 shares during the period. Empowered Funds LLC boosted its stake in Southwest Airlines by 7.6% during the 1st quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock valued at $250,000 after purchasing an additional 527 shares during the period. EverSource Wealth Advisors LLC grew its position in Southwest Airlines by 73.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock worth $185,000 after purchasing an additional 2,408 shares during the last quarter. Finally, First Trust Advisors LP grew its position in Southwest Airlines by 47.4% in the 2nd quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock worth $9,979,000 after purchasing an additional 98,986 shares during the last quarter. Institutional investors own 80.82% of the company’s stock.

Southwest Airlines Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be issued a dividend of $0.18 per share. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $0.72 annualized dividend and a dividend yield of 1.5%. Southwest Airlines’s payout ratio is 44.17%.

Southwest Airlines Company Profile

Southwest Airlines Co is a U.S.-based low-cost carrier that operates a point-to-point domestic and near-international airline network. Headquartered in Dallas, Texas, the company primarily flies Boeing 737 aircraft and offers no-frills, single-class service designed to keep fares competitive. Southwest’s operating model emphasizes high aircraft utilization, quick turnaround times and an open seating policy, allowing customers to board and select seats on a first-come, first-served basis.

Founded in 1967 by Herb Kelleher and Rollin King as Air Southwest Company, Southwest began commercial service in 1971, initially connecting Dallas, Houston and San Antonio.