NEW YORK (TheStreet) -- Southwest Airlines (LUV - Get Report) stock is up by 1.65% to $39.95 in pre-market trading on Thursday, after the company reported 2015 fourth quarter earnings results that were in-line with analysts' expectations.
Before the market open on Thursday, the Dallas-based airline reported earnings of 90 cents per share and that revenue grew 7.5% year over year to $5 billion, which was in-line with analysts' forecasts.
Southwest reported that fuel costs declined by 22.5% year-over-year to $2.03 per gallon, which resulted in a $189 million decline in economic fuel costs.
The company's 2015 economic fuel costs dropped by $1.3 billion. Southwest projected that economic fuel costs would continue to decline in 2016.
Additionally, the company expects to repurchase an additional $500 million of common stock.
"Record revenues, low fuel prices, and continued cost controls resulted in record operating income of $4 billion, and a strong operating margin of 20.1%, both excluding special items," CEO Gary Kelly said in a statement. "We generated strong free cash flow of $1.1 billion in 2015, allowing us to return $1.4 billion to shareholders."
Separately, recently, 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, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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.
You can view the full analysis from the report here: LUVLUV data by YCharts