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Southwest Airlines Co (NYSE:LUV) shares fell about 5% in early trading Thursday after the airline reported stronger-than-expected second-quarter results but issued a third-quarter earnings outlook that fell below Wall Street expectations. The company reported adjusted earnings per share of $0.94 for the second quarter, ahead of consensus estimates of $0.51.
While the top- and bottom-line numbers for Southwest (LUV) give a sense of how the business performed in the quarter ended June 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Southwest Airlines (LUV) came out with quarterly earnings of $0.94 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.43 per share a year ago.
The carrier said it now expects full-year adjusted earnings per share of $3.25 to $4.25, compared with its forecast from January for at least $4.
Southwest Airlines reported a more than 9% increase in second-quarter profit as higher fares are increasingly helping the airline cover its fuel tab.
The Zacks Earnings ESP is a great way to find potential earnings surprises. Why investors should take advantage now.
Evaluate the expected performance of Southwest (LUV) for the quarter ended June 2026, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
LUV's Q2 revenues are likely to benefit from resilient travel demand and improved pricing power, with rising labor costs acting as the key challenge.
Southwest (LUV) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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Southwest Airlines (LUV) is rated 'Hold' with a $44/share price target, reflecting transformation upside but significant fuel and execution risks. LUV's 1Q26 results validated cost management and fee adoption strategies, but fuel price volatility and lack of hedging threaten full-year EPS targets. Management's $4/share 2026 EPS guidance appears optimistic; my revised estimate is $2.9/share, accounting for higher jet fuel costs and execution risks.