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Benzinga
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Southwest's Rocky Q3 Outlook Sparks Doubts Over Steep Q4 Profit Climb

1. LUV reported Q2 earnings of 43 cents, missing estimates of 51 cents. 2. Revenue fell short at $7.24 billion, below the expected $7.3 billion. 3. Goldman Sachs maintains a Sell rating, raising price target to $24. 4. September quarter outlook worsens, anticipating a loss of 12 cents per share. 5. Management indicates a need for a high RASM growth in Q4 to meet EBIT targets.

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FAQ

Why Bearish?

The earnings miss and lowered forecasts indicate declining investor confidence. Historical examples show that similar performance led to stock downturns.

How important is it?

Recent performance indicators (earnings & revenue) suggest challenges that directly impact stock value.

Why Short Term?

Immediate reactions to earnings and forecasts typically influence stock prices quickly. Upcoming quarterly results will further impact perceptions and performance.

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