Southwest Airlines(US:LUV) ZACKSยท2025-07-16 15:06Core Viewpoint - Southwest Airlines is expected to report a year-over-year decline in earnings and revenues for the quarter ended June 2025, with the actual results being crucial for stock price movement [1][3]. Earnings Expectations - The consensus estimate for Southwest Airlines' quarterly earnings is $0.51 per share, reflecting a year-over-year decrease of 12.1% [3]. - Revenues are anticipated to be $7.3 billion, which is a decline of 0.8% compared to the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 20.28%, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][12]. - The Most Accurate Estimate for Southwest is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -4.39% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [9][10]. - Southwest's current Zacks Rank is 3, which complicates the prediction of an earnings beat given the negative Earnings ESP [12]. Historical Performance - In the last reported quarter, Southwest was expected to post a loss of $0.18 per share but actually reported a loss of $0.13, resulting in a positive surprise of 27.78% [13]. - Over the past four quarters, Southwest has beaten consensus EPS estimates four times [14]. Industry Comparison - Alaska Air Group, another player in the airline industry, is expected to report earnings of $1.56 per share for the same quarter, indicating a year-over-year decline of 38.8% [18]. - Alaska Air's revenues are projected to be $3.66 billion, reflecting a 26.3% increase from the previous year, but its EPS estimate has been revised down by 4.1% over the last 30 days [19].