The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Southwest Airlines' revenues will improve 10.6% and EPS will improve 113.3%.
The average estimate for revenue is $4.57 billion. On the bottom line, the average EPS estimate is $0.32.
Last quarter, Southwest Airlines tallied revenue of $3.99 billion. GAAP reported sales were 29% higher than the prior-year quarter's $3.10 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at -$0.02. GAAP EPS of $0.13 for Q1 were much higher than the prior-year quarter's $0.01 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 18.2%, 320 basis points worse than the prior-year quarter. Operating margin was 0.9%, 330 basis points worse than the prior-year quarter. Net margin was 2.5%, 230 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $17.34 billion. The average EPS estimate is $0.81.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,514 members out of 1,768 rating the stock outperform, and 254 members rating it underperform. Among 353 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 301 give Southwest Airlines a green thumbs-up, and 52 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Southwest Airlines is outperform, with an average price target of $11.46.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Southwest Airlines. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.