Will Southwest (LUV) Beat Estimates Again in Its Next Earnings Report?

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]