Southwest Airlines (NYSE:LUV) stock is taking a beating on Thursday after the airline company revealed results for the first quarter of 2023.
One major thing investors are focusing on in this earnings report is the damage the company suffered during a holiday disruption. This kept it from scheduling flights on time and resulted in the company losing $380 million during the quarter.
For the record, this isn’t the first quarter that Southwest Airlines has suffered due to that problem. It also lost $800 million to the event during Q4 2022. As a result, Southwest saw a total of $1.1 billion in losses from the disruption.
How This Affects LUV Stock
With that $380 million hit, Southwest Airlines was only able to report adjusted EPS of -27 cents. That’s worse than the -23 cents per share that Wall Street was expecting. Meanwhile, revenue of $5.7 billion roughly matched estimates.
Bob Jordan, President and CEO of Southwest Airlines, provided an outlook for 2023 in the earnings report:
“Based on current revenue trends and our cost outlook, which includes market wage rate accruals for all open labor contracts, we expect solid profits in second quarter 2023 and continue to expect solid profits and year-over-year growth in both margins and return on invested capital for full year 2023.”
LUV stock is down 6.1% as of Thursday morning and is down 11% year-to-date (YTD).
Investors can find more of the most recent stock market news below!
We’ve got all of the hottest stock market coverage traders need to know about on Thursday! A few examples include why shares of Meta Platforms (NASDAQ:META), Impinj (NASDAQ:PI) and Baudax Bio (NASDAQ:BXRX) stock are moving today. You can find more about these matters at the following links!
More Thursday Stock Market News
- Why Is Meta Platforms (META) Stock Up 15% Today?
- Why Is Impinj (PI) Stock Down 25% Today?
- Why Is Baudax Bio (BXRX) Stock Down 52% Today?
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
