Southwest Airlines (LUV) Q2 Earnings and Revenues Lag Estimates

Financial Performance - Southwest Airlines reported quarterly earnings of $0.43 per share, missing the Zacks Consensus Estimate of $0.51 per share, and down from $0.58 per share a year ago, representing an earnings surprise of -15.69% [1] - The company posted revenues of $7.24 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.7%, and down from $7.35 billion year-over-year [2] - Over the last four quarters, Southwest has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Southwest shares have increased approximately 10.6% since the beginning of the year, outperforming the S&P 500's gain of 7.3% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $0.28 on $7.08 billion in revenues, and $1.10 on $28.05 billion in revenues for the current fiscal year [7] Industry Context - The Transportation - Airline industry is currently in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]