Southwest Airlines Co. (LUV) is scheduled to report first-quarter 2025 results on April 24, 2025. LUV has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the preceding four quarters, missed the mark in the remaining quarter, the average beat being 58.64%. (See the Zacks Earnings Calendar to stay ahead of market-making news).Image Source: Zacks Investment ResearchLet’s see how things have shaped up for LUV this earnings season.Factors Likely to Have Influenc ...

Core Points - Southwest Airlines is facing a lawsuit from a couple whose four-year-old son suffered second-degree burns from spilled hot coffee during a flight [1][2] - The incident occurred while the family was traveling from Orlando to Chicago, with the flight attendant reportedly carrying a drinks tray precariously [1] - The lawsuit claims that the flight attendants were unhelpful and did not provide adequate care for the child's injuries [2][4] Incident Details - The child, referred to as K.W., experienced significant pain and distress throughout the flight after the coffee spill [2] - Following the incident, K.W. had difficulties with basic activities such as sitting in a car seat and using the bathroom, and he missed approximately two weeks of preschool [3][4] - The lawsuit alleges that a gate agent exacerbated the situation by placing K.W. directly on his buttocks, causing one of his burn blisters to burst [3] Legal Action - The Wongs are accusing Southwest Airlines of negligence and are seeking damages exceeding $75,000 [4] - Southwest Airlines has not commented on the ongoing litigation [4]

DALLAS, April 17, 2025 /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) invites you to listen to a live webcast of its first quarter 2025 financial results. Details are as follows: When:    Thursday, April 24, 2025, at 12:30 PM Eastern Time Who:      Bob Jordan, President, Chief Executive Officer, and Vice Chairman of the Board of Directors Andrew Watterson, Chief Operating Officer Tom Doxey, Executive Vice President and Chief Financial Officer Web Address: http://www.southwest ...

Southwest Airlines (LUV) shares ended the last trading session 15.4% higher at $28.55. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 18.9% loss over the past four weeks.The stock gained following President Donald Trump's announcement that he would pause the "reciprocal" import taxes for 90 days. The President said he felt the pause was needed because "more than 75 countries" had contacted his administration to ma ...

Market Overview - The U.S. stock market experienced a significant drop on April 2, with major indices suffering their largest single-day declines in years, triggered by the Trump administration's announcement of a new round of tariff policies [2][3] - The Dow Jones Industrial Average fell by 1,679.39 points, a decline of 3.98%, closing at 40,545.93 points, marking the highest drop since June 2020 [2] - The S&P 500 index decreased by 4.84%, closing at 5,396.52 points, while the Nasdaq Composite index plummeted by 5.97%, closing at 16,550.61 points, both setting records for their largest single-day declines since June 2020 [2] Sector Impact - Major technology stocks were heavily impacted, with Apple shares dropping by 9.25%, resulting in a market value loss of approximately $310.9 billion [4] - Other tech giants like Amazon, Nvidia, Tesla, Google, and Microsoft also saw significant declines, with Amazon falling over 8% and Nvidia dropping over 7% [4] - Financial stocks also faced severe losses, with JPMorgan Chase down nearly 7%, Goldman Sachs down over 9%, and Citigroup down over 12% [4] - The semiconductor sector was not spared, with the Philadelphia Semiconductor Index falling by 9.88% and individual stocks like Micron Technology and Microchip Technology dropping over 16% [4] Global Market Reaction - The panic in the U.S. market led to a ripple effect globally, with European indices such as the STOXX 50 and the UK FTSE 100 also experiencing declines of 3.59% and 1.55%, respectively [7] - Asian markets followed suit, with Japan's Nikkei 225 index dropping 2.26% and South Korea's KOSPI index down 0.48% [7] Economic Outlook - Analysts expressed a pessimistic outlook regarding the new tariff policies, suggesting that they could lead to a significant increase in the average tariff rate on U.S. imports, potentially impacting inflation [6] - Barclays Bank projected that U.S. GDP growth could shrink to 0.1% by 2025 due to the escalating trade tensions [6] - The market is increasingly concerned about retaliatory tariffs from other countries, which could exacerbate the economic downturn [6] Federal Reserve Response - Following the market turmoil, expectations for a Federal Reserve interest rate cut surged, with traders anticipating a 25 basis point cut as early as June [8] - Analysts believe that the current economic "growth shock" may prompt the Fed to adopt a more accommodative monetary policy sooner than previously expected [8]

Core Insights - Southwest Airlines (LUV) has a strong history of exceeding earnings estimates and is well-positioned for continued success in upcoming reports [1][4] - The airline has achieved an average surprise of 112.22% over the last two quarters, indicating robust performance [1][2] Earnings Performance - For the most recent quarter, Southwest reported earnings of $0.56 per share, surpassing the expected $0.45 per share by 24.44% [2] - In the previous quarter, the company reported $0.15 per share against an expectation of $0.05 per share, resulting in a 200% surprise [2] Earnings Estimates - There has been a favorable shift in earnings estimates for Southwest, with a positive Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [4][7] - The current Earnings ESP for Southwest is +10.29%, reflecting increased analyst optimism regarding the company's earnings prospects [7] Zacks Rank and Predictive Power - Southwest holds a Zacks Rank of 2 (Buy), which, combined with a positive Earnings ESP, suggests a high likelihood of beating earnings estimates [7] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced positive surprises nearly 70% of the time [5]

Core Viewpoint - A significant downgrade of airline stocks by Jefferies has led to a notable decline in Southwest Airlines' stock price, reflecting concerns over weakening domestic travel demand and its impact on earnings guidance [1][3]. Group 1: Downgrades and Stock Performance - Jefferies issued a series of downgrades for airline stocks, with Southwest Airlines and Air Canada being downgraded to underperform, while American Airlines and Delta Airlines were cut to hold, leaving United Airlines unchanged at buy [2]. - Following the downgrade, Southwest Airlines' stock price fell by 6% on a day when the S&P 500 index increased by 0.4% [1]. Group 2: Market Trends and Concerns - The researcher highlighted concerns regarding declining consumer sentiment and business confidence, which are contributing to weakening domestic travel demand [3]. - Data from the International Air Transport Association indicated that revenue passenger kilometers, a critical industry metric, decreased by over 4% in February [3]. - Jefferies anticipates that Southwest, Air Canada, and American Airlines will lower their earnings guidance, which typically leads to stock sell-offs [3]. Group 3: Industry Outlook - The travel industry has been recovering since the end of the coronavirus pandemic, but a pullback was expected, raising questions about the severity and duration of this retreat [4]. - The current trends in the airline sector suggest a cautious approach may be warranted for investors [4].

2. Suncor Energy Suncor Energy (SU 1.00%) has been one of Singer's biggest holdings since 2022, when Elliott pushed the company to add new board members, overhaul its management team, and undergo a strategic review. Elliott now owns 52.7 million shares of the Canadian oil and gas stock, worth $2 billion. 3. Southwest Airlines Paul Singer, the founder and head of Elliott Investment Management, is one of the world's most successful and influential activist investors working today. With a net worth of around $ ...

The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days. Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance ...

Core Insights - Southwest Airlines was previously regarded as the best-run and most consistently profitable airline globally, but its performance has declined in the post-COVID era due to high labor costs and challenges in generating premium and international revenue [1] Group 1 - The airline's historical reputation for operational excellence and profitability has been compromised in recent years [1] - Key factors contributing to the decline include increased labor expenses and a lack of premium service offerings [1] - The inability to tap into international markets has further hindered revenue growth for the airline [1]