Southwest Airlines(US:LUV) ZACKS·2025-10-22 22:31Group 1: Earnings Performance - Southwest Airlines reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, but down from $0.15 per share a year ago, representing an earnings surprise of +1,000.00% [1] - The company posted revenues of $6.95 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.29%, compared to $6.87 billion in the same quarter last year [2] - Over the last four quarters, Southwest has surpassed consensus EPS estimates three times and topped consensus revenue estimates only once [2] Group 2: Stock Performance and Outlook - Southwest shares have increased by approximately 3.2% since the beginning of the year, while the S&P 500 has gained 14.5% [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 $0.69 on revenues of $7.53 billion, and $1.03 on revenues of $28.17 billion for the current fiscal year [7] Group 3: Industry Context - The Transportation - Airline industry, to which Southwest belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5] - The current Zacks Rank for Southwest is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6]