- Southwest Airlines reported an Adjusted EPS of 56 cents, surpassing the estimate of 47 cents.
- The company recorded operating revenue of $6.93 billion, slightly below the anticipated $6.97 billion.
- Passenger revenue totaled $6.31 billion, nearly matching the estimated $6.32 billion.
- Freight revenue was $45 million, below the forecast of $45.5 million.
- Other revenue came in at $579 million, missing the estimate of $588.5 million.
- Adjusted net income amounted to $356 million, significantly above the projected $290.8 million.
- Adjusted operating income reached $397 million, exceeding the estimate of $312.9 million.
- Available seat miles were reported at 43.53 billion, just under the estimated 43.69 billion.
- The Load factor was 79.2%, which is lower than the expected 81.8%.
- The average passenger fare was $184.81, above the estimate of $180.78.
- Yield per passenger mile was recorded at 18.30 cents.
- CEO Bob Jordan indicated efforts to achieve and exceed a cost reduction target of $500 million by 2027.
- Southwest foresees operating revenue per available seat mile growing by 5% to 7% year-over-year in the first quarter of 2025.
- The company expects a decrease in available seat miles by 2% to 3% year-over-year in the first quarter of 2025.
- For the full year 2025, available seat miles are anticipated to increase by 1% to 2%.
- Southwest projects an adjusted operating income growth of 3% to 5% for FY 2025.
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Southwest Airlines Co on Smartkarma
Analyst coverage of Southwest Airlines Co on Smartkarma reveals contrasting sentiments from Baptista Research. In their report “Southwest Airlines Co.: What Is Their Latest Fleet Monetization Strategy? – Major Drivers,” Baptista Research delves into the airline’s third-quarter 2024 earnings presentation, highlighting operational performance updates and strategic initiatives. Led by CEO Bob Jordan, Southwest aims to enhance shareholder value and customer service through its transformative plan. The analysis focuses on factors influencing the company’s future stock price, utilizing a Discounted Cash Flow (DCF) valuation methodology.
On the other hand, in the report “Southwest Airlines: Fleet Expansion Challenges & Other Elements Causing Our Pessimism! – Financial Forecasts,” Baptista Research expresses a cautious outlook following Southwest’s second quarter 2024 performance disclosure. Despite impressive operational metrics, including a high completion factor under adverse weather conditions, financial results fell short of expectations. This disparity prompts a deeper evaluation of both positive and negative aspects shaping Southwest’s current position in the market as outlined by Baptista Research.
A look at Southwest Airlines Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Southwest Airlines Co. exhibits a balanced outlook across key factors. With a Value, Dividend, and Growth score of 3 each, the company is considered to have a solid standing in terms of its financial metrics and future potential. Additionally, Southwest Airlines Co. received a Resilience score of 4, indicating a higher level of stability and adaptability within the industry. Coupled with a Momentum score of 4, suggesting positive upward movement, the airline seems well-positioned for continued growth and performance.
Southwest Airlines Co. is a leading domestic airline known for its short-haul, high-frequency, point-to-point services across the United States. The company’s Smartkarma Smart Scores highlight a consistent performance in various areas, underlining its stability, growth potential, and momentum. With a balanced outlook and strong presence in the domestic market, Southwest Airlines Co. appears to be on a promising trajectory for long-term success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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