NEW YORK (TheStreet) -- Shares of Southwest Airlines (LUV) - Get Report closed lower on Monday ahead of the company's 2016 third quarter earnings, due out before Wednesday's market open.

Analysts surveyed by FactSet are looking for the Dallas-based airline to post adjusted earnings of 88 cents per share on revenue of $5.16 billion.

In the year-ago period, Southwest reported adjusted earnings of 94 cents per share on revenue of $5.32 billion.

A recent survey of hedge funds and long-only investors showed participants were concerned that overcapacity throughout the industry will lead to weak passenger revenue per available seat mile in the third quarter, according to Credit Suisse.

Investors now see airlines posting positive unit revenues in the second half of 2017 compared to previous expectations for the first half of 2017, the firm said.

TheStreet Recommends

Credit Suisse has an "outperform" rating and $52 price target on Southwest stock.

Southwest recently reported that its 2016 September traffic grew 7.9% year-over-year.

Separately, 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.

TheStreet Ratings rated this stock as a "buy" with a ratings score of A-.

The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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

Image placeholder title