Southwest Airlines Co. (LUV) released its first quarter results on Friday, April 23, 2021. The company reported net earnings of $0.19 per share for the first quarter ending March 31, 2021. Earnings for this past quarter were up 204 percent compared to the same period a year ago.
The company was founded in 1967 and is headquartered in Dallas, Texas. Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the United States and near-international markets. As of December 31, 2020, the company operated a total fleet of 718 Boeing 737 aircrafts; and served 107 destinations in 40 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.
Southwest Airlines Co.'s revenue decreased 68 percent over the past trailing twelve-month period versus the previous twelve-month period. Gross margins increased to 47.47% for the first quarter compared to the same period in the previous year, and operating margins increased to 9.7% over the same period. Net earnings for past trailing twelve months were $-2864.0 million, down 257% from the prior year.
Moving on to the balance sheet, Southwest Airlines Co.’s cash levels jumped 204% for the third quarter over the same period last year. Overall liquidity of the balance sheet, as measured by the current ratio, increased 186.73% this past year. The current ratio for Southwest Airlines Co. now stands at 1.97. The company increased shares outstanding by 13.76%.
Shares of LUV are currently trading around $61.53. In terms of valuation, the stock is trading at a trailing twelve-month price to earnings ratio of nan and price to book ratio of 4.12.
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This article was written by Value Investing News (https://www.valueinvestingnews.com) on Saturday, April 24, 2021.