Southwest Airways Co. (LUV) reported fourth-quarter 2024 earnings of 56 cents per share, which outpaced the Zacks Consensus Estimate of 45 cents and improved 51.5% from the year-ago reported quarter.
Discover the most recent EPS estimates and surprises on Zacks Earnings Calendar.
Revenues of $6.93 billion missed the Zacks Consensus Estimate of $6.95 billion. The highest line, nonetheless, improved 1.6% yr over yr on the again of the profitable execution of tactical actions, which included the maturation of the income administration system and methods, advertising and marketing and distribution evolution, and community optimization, in addition to continued demand energy. Shut-in bookings carried out higher than expectations in December, primarily through the vacation interval.
Southwest Airways Co. Value, Consensus and EPS Shock
Southwest Airlines Co. price-consensus-eps-surprise-chart | Southwest Airways Co. Quote
Working Statistics
Airline site visitors, measured in income passenger miles, fell 3.1% yr over yr to 34.47 billion within the quarter beneath evaluation. Capability or obtainable seat miles (ASMs) fell 4.4% yr over yr to 43.53 billion.As site visitors decline is lower than capability,load issue (proportion of seat occupancy) grew 1 proportion level to 79.2%. Our estimate stands at 81.9%.
Passenger income per obtainable seat mile (PRASM: a key measure of unit revenues) grew 6.2% yr over yr to 14.49 cents.
Income per obtainable seat mile (RASM) grew 6.2% yr over yr to fifteen.92 cents.
Working Bills & Earnings
Within the fourth quarter, Southwest Airways incurred an working revenue (as reported) of $278 million in opposition to an working lack of $404 million within the year-ago reported quarter. On an adjusted foundation (excluding particular objects), the corporate reported working revenue of $397 million in contrast with $182 million within the year-ago reported quarter.
Whole adjusted working bills (excluding revenue sharing, particular objects, gas and oil bills) elevated 6.3% yr over yr.
Gasoline price per gallon (inclusive of gas tax: financial) declined 19.3% yr over yr to $2.42.
Consolidated unit price or price per obtainable seat mile (CASM) excluding gas, oil and profit-sharing bills, and particular objects grew 11.1% yr over yr.
Liquidity
Southwest Airways ended the fourth quarter with money and money equivalents of $7.50 billion in contrast with $8.50 billion on the finish of the prior quarter. The corporate had long-term debt (much less present maturities) of $5.06 billion within the fourth quarter in contrast with $5.07 billion on the finish of the prior quarter.
LUV generated $476 million of money from working actions within the reported quarter, whereas CapEx was $461 million.
LUV returned $680 million to shareholders within the type of dividends and share repurchases in 2024. Additional, LUV introduced a $750 million accelerated share repurchase program beneath its $2.5 billion share repurchase authorization
Outlook
For first-quarter 2025, ASMs are estimated to say no 2%-3% from the year-ago reported determine. Financial gas prices per gallonare anticipated to be between $2.50 and $2.60. RASM is anticipated to be up 5-7% from the year-ago reported determine. LUV expects CASM, excluding gas, oil and profit-sharing bills, and particular objects, to extend 7-9% within the first quarter of 2025 from the comparable interval in 2024. Curiosity bills are anticipated to be $45 million within the first quarter.
For second-quarter 2025, LUV expects capability to extend within the vary of 1-2% on a year-over-year foundation.
For 2025, working margin, excluding particular objects, is predicted to be up 3-5%. Return on invested capital (ROIC) is predicted to be up 5-8%. ASMs are estimated to enhance 1-2% yr over yr. LUV estimates 2025 efficient tax charge within the vary of twenty-two%–24%.
For 2027,LUV goals to realize working margin, excluding particular objects, ofmore than 10%. ROIC is predicted to extend greater than 15%. ASMs are estimated to enhance 1-2% yr over yr.
LUV’s Zacks Rank
At the moment, Southwest Airways carries a Zacks Rank #2 (Purchase). You possibly can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This fall Performances of Different Transportation Corporations
Delta Air Traces DAL reported fourth-quarter 2024 earnings (excluding 56 cents from non-recurring objects) of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.76. Earnings elevated 44.5% on a year-over-year foundation on account of low gas prices.
DAL’srevenues of $15.56 billion surpassed the Zacks Consensus Estimate of $14.99 billion and elevated 9.4% on a year-over-year foundation, pushed by sturdy vacation journey demand. Adjusted working revenues (excluding third-party refinery gross sales) totaled $14.44 billion, up 5.7% yr over yr. Passenger revenues, which accounted for 82.4% of whole revenues, elevated 5% yr over yr at $12.82 billion.
J.B. Hunt Transport Providers (JBHT) reported fourth-quarter 2024 earnings per share of $1.53, which fell in need of the Zacks Consensus Estimate of $1.62. Nonetheless, the underside line elevated 4.1% on a year-over-year foundation.
JBHT’s whole working revenues of $3.15 billion narrowly beat the Zacks Consensus Estimate of $3.13 billion however declined 4.8% yr over yr. The decline was primarily on account of decrease gas surcharge revenues and yield stress in its Intermodal section.
JBHT’s fourth-quarter 2024 working revenues of $2.78 billion, excluding gas surcharge income, decreased 2% from the year-ago reported quarter. Whole working revenue for the reported quarter elevated 2% yr over yr to $207 million.
Alaska Air Group, Inc. (ALK) reported stable fourth-quarter 2024results, whereby each earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of 97 cents outpaced the Zacks Consensus Estimate of 47 cents and improved greater than 100% on a year-over-year foundation. The reported determine exceeded the guided vary of 40-50 cents.
ALK’s backside line benefitted from stable income development, price and operational efficiency all through the quarter and vacation journey durations. ALK additionally benefitted from a renegotiation of sure curiosity funds and favorability in its fourth-quarter tax charge.
ALK’s working revenues of $3.53 billion beat the Zacks Consensus Estimate of $3.51 billion. The highest line jumped 38.4% yr over yr, with passenger revenues accounting for 89.9% of the highest line and growing 37% owing to continued restoration in air-travel demand.
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
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