Southwest (LUV) Stock Falls Ahead of Q2 Earnings Report

Southwest (LUV) is scheduled to report earnings on Thursday, July 21 before the market opens.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Southwest Airlines (LUV) - Get Report  are down 0.79% to $42.84 this afternoon as the company prepares to report 2016 second quarter earnings on Thursday, July 21 before the market opens.

Analysts surveyed by Thomson Reuters are expecting earnings per share of $1.21 on $5.41 billion in revenue.

For the 2015 second quarter, Southwest reported earnings of $1.03 per share on revenue of $5.11 billion.

Following the June Brexit vote, airline stocks took significant hits.

Despite this, analysts at Deutsche Bank have "favored" domestic names like Southwest due to their lack of international exposure, Barron's reported. Southwest stock is up 8.21% since the Brexit vote on June 24, but down 0.51% for the 2016 year so far.

Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B+.

The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, increase in net income, expanding profit margins and good cash flow from operations.

TheStreet Ratings feels its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

You can view the full analysis from the report here: LUV

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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