Why Southwest Airlines Stock Is Losing Altitude Today
Surging travel demand did not translate into blockbuster earnings at Southwest Airlines (NYSE: LUV), and Wall Street was caught off guard by the airline's guidance for the remainder of the year. Investors are hitting the "eject" button, sending Southwest shares down as much as 10% on Tuesday.
Airlines have reported massive demand for tickets this summer, but there have been some questions about how long the travel surge can continue in the face of rising inflation and economic uncertainty. Southwest's results, released Thursday, did little to ease those fears.
Southwest earned $1.09 per share in the second quarter, just a penny shy of expectations, on revenue that at $7.04 billion beat expectations by about $60 million. Revenue was up 4.6% year over year, but operating income fell by 31% to $795 million despite falling fuel prices.
Source Fool.com
Southwest Airlines Co. Stock
Our community is currently high on Southwest Airlines Co. with 28 Buy predictions and 11 Sell predictions.
As a result the target price of 41 € shows a slightly positive potential of 18.6% compared to the current price of 34.57 € for Southwest Airlines Co..
