LUV Earnings Prediction
The chart below shows how LUV performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LUV sees a +2.14% change in stock price 10 days leading up to the earnings, and a +0.89% change 10 days following the report. On the earnings day itself, the stock moves by -2.97%. This data can give you a slight idea of what to expect for the next quarter's release.
LUV Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
6.93B
1.57%
0.87%
Gross Margin
68.76%
10.65%
4.47%
Operating Margin
4.08%
193.79%
641.82%
Net Margin
3.77%
202.17%
284.69%
EPS
0.41
197.62%
272.73%
No Data Available
LUV Earnings Analysis
Southwest Airlines Co Corporation (LUV.N) Earnings Conference Call
Positive
Unit Revenue Increase: Southwest Airlines achieved an 8% year-over-year increase in unit revenues for Q4 2024, exceeding prior guidance of 5.5% to 7%.
Flight Completion Excellence: The airline finished the year with an industry-leading completion factor, with less than 1% of flights canceled, and was recognized as one of the top two U.S. carriers by the Wall Street Journal.
EBIT Contribution Target: The company is on track to deliver or exceed a $1 billion EBIT contribution target for 2025, excluding benefits from fleet transactions, demonstrating strong operational performance.
Shareholder Value Commitment: In 2024, Southwest returned $680 million to shareholders through dividends and share repurchases, including a $250 million share repurchase program, reflecting a commitment to shareholder value.
Network Expansion Milestone: The successful signing of a commercial agreement with Iceland Air marks a significant milestone in expanding Southwest's network and partnership opportunities.
Negative
Unit Cost Inflation Impact: Unit cost inflation is above normal, with Q4 2024 CASM ex increasing by 11.1% year over year, driven by elevated operating expenses and a decline in capacity growth, indicating significant cost pressures.
Overhead Cost Management Issues: Corporate overhead has grown at a faster rate than the rest of the airline, necessitating aggressive actions to become a leaner organization, highlighting inefficiencies in cost management.
Fleet Delivery Adjustment: The conservative fleet delivery assumption for 2025 has been adjusted to 38, down from a contractual number of 136, indicating potential operational challenges and limitations in fleet growth.
CASM Ex Increase Analysis: Q4 2024 saw a year-over-year CASM ex increase of 7.8%, reflecting ongoing inflationary pressures from wage increases and capacity moderation efforts, which could hinder profitability.
CASM Increase Expectations: The expectation for Q1 2025 CASM ex is to increase by 7% to 9% year over year, indicating continued cost challenges that may impact financial performance.
