This airline’s earnings beat analysts’ estimates by eight cents per share last quarter, and 2014’s estimates have risen by $0.28 in the past 90 days.
Southwest Airlines (LUV)
from Blue Chip Growth
Southwest Airlines (LUV) is known as America’s largest low-fare carrier as it serves more customers than any other airline in the country. With nearly 700 aircraft in its fleet, Southwest serves 96 destinations across 41 states, the District of Columbia and Puerto Rico. Southwest Airlines has been known for having some of the most affordable fares—and highest customer satisfaction ratings—in the business.
Southwest Airlines is slated to report third-quarter results on or around October 23. And it’s shaping up to be a solid report, with analysts calling for $0.50 EPS on $4.77 billion in revenue. Compared with the prior year quarter this works out to 47.1% annual earnings growth and 5% sales growth. Better yet, analysts have been revising their EPS estimates higher over the past 90 days, with the consensus estimate having risen 16% during that time.
Looking ahead to FY 2014, Southwest Airlines is headed for 4.7% annual sales growth and 60.7% earnings growth, above the 30.1% industry average for 2014 bottom-line growth. My income investors may want to note that LUV pays a 0.8% dividend. In the meantime, this Conservative stock is a strong buy up to $37 per share.
Louis Navellier, Blue Chip Growth, www.bluechipgrowth.com, 800-718-8289, October 2014