On Jan. 17, Southwest Airlines (NYSE:LUV) released fourth-quarter and year-end earnings for the period ended Dec. 31, 2006. Here are the quick and dirty details for the quarter.
- Sales grew 19.4% to $2.3 billion.
- Total diluted earnings fell 22.2% but included a number of special items. Excluding the special items, earnings grew 20%.
- Management is targeting 15% growth in diluted earnings, excluding special items, for 2007.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Sales |
$2,276 |
$1,906 |
19.4% |
|
Net Profit |
$57 |
$70 |
(18.6%) |
|
EPS |
$0.07 |
$0.09 |
(22.2%) |
|
Diluted Shares |
813 |
816 |
(0.4%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
62.96% |
65.48% |
(2.52) |
|
Operating Margin |
7.64% |
7.35% |
0.29 |
|
Net Margin |
2.50% |
3.67% |
(1.17) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,759 |
$2,531 |
(30.5%) |
|
Accounts Rec. |
$241 |
$258 |
(6.6%) |
|
Inventory |
$181 |
$150 |
20.7% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$643 |
$524 |
22.7% |
|
Long-Term Debt |
$1,567 |
$1,394 |
12.4% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$143 |
$32 |
$111 |
|
Capital Expenditures |
$353 |
$204 |
$149 |
|
Free Cash Flow |
($210) |
($172) |
($38) |
Find out why Fools always follow the money.
Comparable companies:
- American Airlines (NYSE:AMR)
- United Airlines (NYSE:UAL)
- JetBlue (NASDAQ:JBLU)
- Midwest Air (AMEX:MEH)
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Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.