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)

*Expressed in percentage points.

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 by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

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.