Southwest Airlines (NYSE:LUV) earnings for first quarter of 2020 have LUV stock heading higher on Tuesday. This comes after reporting adjusted losses per share of 15 cents, which is better than Wall Street’s estimate of 41 cents. The travel company’s revenue of $4.23 billion is below analysts’ estimates of $4.42 billion.
Now, let’s take a closer look at the Southwest Airlines earnings report.
- Adjusted losses per share are a switch from adjusted earnings per share of 70 cents during the same time last year.
- Revenue for the quarter is 17.8% lower than the $5.15 billion reported in the first quarter of 2019.
- Operating loss of $110 million is worse year-over-year than an operating income of $505 million.
- The Southwest Airlines earnings report also includes a net loss of $94 million.
- That’s a decline compared to the company’s net income of $387 million from the same period of the year prior.
Gary C. Kelly, chairman and CEO of Southwest Airlines, said this about the earnings.
“In late February, we began experiencing a precipitous drop in passenger demand and bookings due to the novel coronavirus COVID-19 pandemic, resulting in a first quarter 2020 net loss. The U.S. economy has been at a standstill, and the current outlook for second quarter 2020 indicates no material improvement in air travel trends.”
It’s also worth pointing out that Southwest Airlines announced offerings of common stock and convertible notes today. This has it offering up 55 million shares of LUV stock, as well as $1 billion of convertible notes due in 2025.
LUV stock was up 2.71% as of Tuesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
