Southwest Airlines Company (NYSE:LUV) Quarterly Analysis


Quarterly Sales and EPS Roundup:

Southwest Airlines Company (LUV) reported sales (ttm) of 20.97 Billion, whereas, 13 number of analysts estimated the mean sale of 5207.6 million. The analysts estimated sales for the higher end at 5229.82 million and lower end at 5177.1 million while the year ago reported sale was 5158.43 million.

7 number of analysts have estimated the sales of the company for the quarter ending Jan 25, 2018, analysts estimated mean sale target of 5124.45 million while high and low sale targets are estimated at 5180 million and 5049.2 million respectively.

Southwest Airlines Company (LUV) reported earning per shares for the quarter ending Oct 26 BMO at 0.88, whereas, 18 number of analysts estimated the mean EPS at 0.82. The analysts estimated EPS for the higher end at 0.88 and lower end at 0.77 while the year ago reported earnings per share was 0.88.

The company has mean EPS estimate of 0.82 reported by 12 number of analyst for the quarter ending Current Qtr.(Dec2017). The analysts estimated mean EPS at 0.82 while the high and low EPS estimate stand at 0.89 and 0.77 respectively. In contrast to the year ago quarter EPS was at 0.79. EPS long term mean growth rate estimated by 5 analysts is at 11.21%, whereas, the high and low Long term growth rate estimated at 16 and 3.44.

Valuation Ratios of Southwest Airlines Company (LUV) versus the Industry and Sector:

Let’s have a look at some of the important valuation ratios of the Southwest Airlines Company (LUV). These ratios are important while doing valuation of the company or the shares of the company.

Southwest Airlines Company (LUV) currently has P/E (Price to Earnings) ratio of 15.24 while the company’s industry has 5.51 P/E and the sector P/E is 24.19. Similarly, the company’s last 5 years high P/E ratio is 25.84 and low P/E is 13.17, whereas, the industry’s and sector’s  high P/E for the past year is 68.83 and 42.6 respectively and low P/E ratio for the last 5 years is 8.53 for the industry and 14.01 for the Sector.

Beta is also an important valuation ratio for analyzing the stock of the company, LUV has Beta of 1.33 while its industry and Sector’s beta remains at 0.32 and 0.95 respectively.

Price to Sale ratio of the company stands at 1.51 while Price to Book Ratio stands at 3.59. Its Price to Cash Flow ratio shows the value of 9.35, whereas, the industry and sector ratio of Price to Cash Flow ticked at 4.02 and 20.13 respectively.

5 Year Growth Rate Analysis:

Growth rates are very important while analyzing the long term growth and valuation of a certain company.

5 year sales growth rate is an important factor for valuation analysis, the 5 year sales growth of the company stands at 5.46 while the industry’s and the sector’s growth for next 5 years ticked at 6.03 and 8.26 respectively. The company’s 5 year Earnings per share growth and Capital Spending growth remains at 72.89 and 17.27.

Southwest Airlines Company (LUV) Trading Statistics:

The company surged 0.94% and closed its last trading session at $53.25. The market capitalization of the company is at $31.88 Billion. The stock touched 52-week High of $64.39 on 07/07/17 and 52-week Low of $43.88 on 11/30/16. The stock currently has Weekly Volatility of 1.47% and Monthly Volatility of 2.17%. The Beta for the company stands at 1.33 and its Average True Range (ATR) shows a value of 1.08.