Is A Beat In The Cards For Southwest (LUV) In Q4 Earnings?
Zacks Investment Research | Jan 20, 2019 09:53PM ET
Southwest Airlines Co. (NYSE:LUV) is slated to release fourth-quarter 2018 earnings numbers on Jan 24, before the market opens.
Last reported quarter, the company delivered a positive surprise of 1.9%. Moreover, the bottom line improved 22.7% on a year-over-year basis despite higher fuel prices. Operating revenues too outpaced the Zacks Consensus Estimate. Additionally, the top line rose year over year. Results were aided by stronger passenger revenues.
Our proven model shows that Southwest is likely to beat on earnings this reporting cycle as well, courtesy of a perfect combination of the following two key ingredients:
Earnings ESP: Southwest has an Earnings ESP Filter .
Zacks Rank: Southwest carries a Zacks Rank #3 (Hold). Notably, stocks with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 alongside a positive ESP have significantly higher chances of beating estimates. Thus, the above combination raises the odds of a likely earnings surprise for this stock.
Conversely, Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Southwest Airlines Co. Price and EPS Surprise
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