Southwest Airlines (LUV) canceled 300 flights on Sunday, to inspect 79 Boeing (BA) 737-300 planes to address possible "skin fatigue". Overall option implied volatility of 29 is below its 26-week average of 32 according to Track Data, suggesting decreasing price movement.

KB Home (KBH) April put option implied volatility is at 52, May is at 45; compared to its 26-week average of 46 according to Track Data, suggesting larger near term price movement into its expected release of Q1 results on April 5.

Update is by Stock Specialist Paul Foster of theflyonthewall.com

Options Update: Southwest Volatility Low into Inspection of Planes originally appeared on BloggingStocks on Mon, 04 Apr 2011 17:30:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Goldman upgraded Citigroup (C) to conviction buy from buy, Principal Financial (PFG) to buy from neutral, and Stancorp Financial (SFG) and Hartford Financial (HIG) to neutral from sell.
• JetBlue (JBLU) was upgraded to overweight from neutral at JPMorgan.
• Barclays upgraded Royal Caribbean (RCL) and Carnival (CCL) upgraded to overweight from equal weight.
• Hollysys Automation (HOLI) was upgraded to buy from hold at Roth Capital.
• RBC Capital upgraded Alliance Data Systems (ADS) to outperform from sector perform.
• RRI Energy (RRI) was upgraded to buy from hold at Citigroup.

Continue reading Analyst Calls: ALTR, ATHN, C, CCL, HD, JBLU, LUV, MSFT, RCL ...

Analyst Calls: ALTR, ATHN, C, CCL, HD, JBLU, LUV, MSFT, RCL ... originally appeared on BloggingStocks on Mon, 25 Oct 2010 11:30:00 EST. Please see our terms for use of feeds.

More Monday merger fun, this time from the airline sector. Reportedly, Southwest Airlines (LUV) announced that it will purchase AirTran Airlines for roughly $1.42 billion.

This move will be funded mainly with debt, and it will help Southwest establish a larger presence in cities like Boston and New York. What's more (as the article points out), Southwest will now be in "head-to-head competition with Delta Air Lines in Delta's home base of Atlanta."

Continue reading Southwest Airlines to Purchase AirTran

Southwest Airlines to Purchase AirTran originally appeared on BloggingStocks on Mon, 27 Sep 2010 11:00:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Keefe Bruyette upgraded East West Bancorp (EWBC) to outperform from market perform after the company acquired assets from Washington First International Bank. The firm has a $21 price target for shares.
• Piper Jaffray upgraded Amylin (AMLN) to overweight from neutral, citing valuation and Bydureon's profile. The firm maintains a $26 price target for shares.
• Soleil upgraded MGM Mirage (MGM) to hold from sell, citing signs of stabilization in Vegas and valuation. The firm upped its target for shares to $13 from $11.10.
• T. Rowe Price (TROW) was upgraded to outperform from market perform at FBR Capital.
• JetBlue (JBLU) was upgraded to buy from neutral at BofA/Merrill.
• NetEase.com (NTES) was upgraded to buy from hold at Standpoint Research.

Continue reading Analyst Calls: AMLN, AMR, EWBC, FSYS, LGF, LUV, MGM, PLOW, SXCI, TROW ...

Analyst Calls: AMLN, AMR, EWBC, FSYS, LGF, LUV, MGM, PLOW, SXCI, TROW ... originally appeared on BloggingStocks on Mon, 14 Jun 2010 12:00:00 EST. Please see our terms for use of feeds.

For years, it's been evident that smaller airlines have had an operating advantage, particularly when they use less expensive airports. They've been able to post better numbers as a result, and in the current travel slump, they've outperformed the larger carriers. Well, they've also picked up a considerable amount of market share.

According to a report by USA Today, low cost carriers now have 30% of the market in the United States. Price-sensitive consumers are turning to cheaper alternatives, even if it means (for fliers with elite status) giving up the perks they've earned through years of customer loyalty.

Continue reading Low cost carriers own 30% of domestic airline biz, growing fast

Low cost carriers own 30% of domestic airline biz, growing fast originally appeared on BloggingStocks on Tue, 10 Nov 2009 16:15:00 EST. Please see our terms for use of feeds.

United Airlines (NASDAQ: UAUA), US Airways (NYSE: LCC) and American Airlines (NYSE: AMR), according to an influential analyst, have run out of options. Jamie Baker of JPMorgan said in a July 20, 2009 report that these companies couldn't do anything to prevent a cash crisis. They only savior available to them would have to be an outside investor. To call the position grim would be optimistic. Unfortunately, it couldn't have come at a worse time.

As Baker was walking the bear into the airline industry, United was starting to celebrate its change in direction. The carrier has improved its on-time rate, according to a USA Today report, and its operations are coming around. Despite the fact that the airline industry has been brutalized by the global recession, the airline has made some progress. Through August, the company's share price doubled, and its ascent has continued in September. So, the company is locked in an ongoing struggle to manage its identity, cope with its past and shape how the world sees it today.

The operational "makeover" has resulted in a reduction of its fleet from 601 jets in 2000 to 386 as of the summer of 2009. In terms of passenger traffic, it's in the #4 spot in the United States - trailing Delta (NYSE: DAL), Southwest (NYSE: LUV) and American. With Q2 revenues off 25.2% year-over-year, however, drastic measures are still necessary.

Continue reading United's battle over its identity

United's battle over its identity originally appeared on BloggingStocks on Thu, 17 Sep 2009 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Southwest Airlines shares descend on maintenance worries

Southwest Airlines shares descend on maintenance worries originally appeared on BloggingStocks on Wed, 26 Aug 2009 16:40:00 EST. Please see our terms for use of feeds.

There may be new hope for the perpetually ailing airline industry. While I wouldn't expect these companies to become top performers anytime soon, it looks like the best revenue stream is the one nobody's been talking about: change and cancellation fees.

These penalties, which can reach up to $150, bring $2 billion in revenue into the industry annually. According to the Department of Transportation, they were good for $527.6 million in the first quarter -- in the United States alone. This is 3.2% of U.S. airline revenue.

American Airlines parent AMR (NYSE: AMR) raked in $116 million in revenue from these penalties in the first quarter of 2009 -- compared to $108 million from the more highly publicized extra bag fees. For JetBlue (NASDAQ: JBLU), the numbers are smaller (JetBlue, of course, isn't as big as AMR) but no less compelling. By pumping its change and cancellation fee from $100 to $150, the airline scored $32.2 million in Q1 2009, up from $25 million in Q1 2008.

Continue reading Could cancellation fees save the airlines?

Could cancellation fees save the airlines? originally appeared on BloggingStocks on Thu, 30 Jul 2009 11:40:00 EST. Please see our terms for use of feeds.

Alcoa Inc. (NYSE: AA) started off the new earnings season with disappointing results that helped to stifle the recent rally. Was that enough of a sign of what's to come? No, probably not. But the earnings reports start to fly in earnest this week, which should provide a more detailed picture of the state of things.

Analysts surveyed by Thomson Reuters anticipate that some of the biggest names will prove to be holding their own. Google Inc. (NASDAQ: GOOG) is expected to post a profit of $4.91 per share, marginally higher than a year ago, and Johnson & Johnson's (NYSE: JNJ) expected $1.22 per share profit is slightly lower year over year. Even Mattel Inc.'s (NYSE: MAT) estimated loss of $0.13 per share is the same as in the year-ago period.

Continue reading The week in preview: The new earnings season ramps up

The week in preview: The new earnings season ramps up originally appeared on BloggingStocks on Sun, 12 Apr 2009 12:30:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Advanced Micro Devices Inc. (NYSE: AMD) reported dismal Q4 results due to lower demand.
• AMR Corp. (NYSE: AMR) reported a bigger-than-expected Q4 loss, sending shares lower.
• Check Point Software Technologies Ltd. (NASDAQ: CHKP) earnings prospects led to an upgrade.
• eBay Inc. (NASDAQ: EBAY) posted Q4 and full-year results with increased revenue due to a stronger dollar.
• Google Inc. (NASDAQ: GOOG) reported strong Q4 numbers that beat analysts' expectations.
• International Business Machines Corp. (NYSE: IBM) reported better-than-expected Q4 and 2008 earnings.
• Lockheed Martin Corp. (NYSE: LMT) posted strong Q4 results but lowered its 2009 guidance.
• Northern Trust Corp. (NASDAQ: NTRS) shares surged after posting better-than-expected earnings.
• Regions Financial Corp. (NYSE: RF) reported a huge loss due to write-downs and offered a bleak outlook.
• Societe Generale said that it expects to have broken even in the final quarter of 2008.
• Southwest Airlines Co. (NYSE: LUV) posted its second straight quarterly loss due to fuel hedging costs.
• UAL Corp. (NASDAQ: UAUA) reported a huge loss on the erosion in value of oil hedges as prices dropped.
• Usana Health Sciences Inc. (NASDAQ: USNA) posted record Q4 results despite one-time charges.

For more highlights from this week, see Apple, Microsoft, GE, Johnson & Johnson, Harley Davidson and others

Continue reading Earnings highlights: eBay, Google, IBM, Southwest, UAL, AMR, Northern Trust and others

Earnings highlights: eBay, Google, IBM, Southwest, UAL, AMR, Northern Trust and others originally appeared on BloggingStocks on Sat, 24 Jan 2009 14:40:00 EST. Please see our terms for use of feeds.

Southwest Airlines (NYSE: LUV) is famous for making a profit every year since it got started in the 1970s. Given the billions that the airline industry has lost in the last several years, that's quite a feat. And I've posted about how Southwest has been able to sustain that superior performance. But now Southwest's streak could be in danger.

How so? Southwest lost $56 million in its fourth quarter -- its second in a row, because it bet that the price of jet fuel would continue to climb. Southwest had to post cash collateral after jet fuel fell 65% in 2008's second half to less than the rates in its contracts. Southwest reduced most of these fuel hedges in December. Southwest also cut its plans to expand in 2009 -- it will pull 15 aircraft from flying this year as it adds 13 new planes, and it will delay some 2010 deliveries.

But here's the good news -- Southwest made a profit of 8 cents a share excluding $117 million in costs related to fuel hedging -- 3 cents a share above the 5 cents analysts had expected it to earn. But the question that remains for Southwest shareholders is whether it will make a profit in 2009. The answer depends on whether it can cut back on capacity to match lower demand in an economic downturn and whether its fuel hedges will make or lose money for Southwest.

That market may be betting that it can keep its streak going. Its stock is up 6.4% in pre-market.

Visit AOL Money & Finance for more earnings coverage.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Will Southwest lose money in 2009 for the first time in its history? originally appeared on BloggingStocks on Thu, 22 Jan 2009 10:45:00 EST. Please see our terms for use of feeds.

I think it's fair to say that there's much trepidation about the earnings season that picks up steam this week. And for better or worse, numbers from the big financials have begun to roll in. Last week we saw profit sink for JPMorgan Chase (NYSE: JPM) and significant losses from Bank of American Corp. (NYSE: BAC), Citigroup Inc. (NYSE: C), and Deutsche Bank (NYSE: DB).

Analysts surveyed by Thomson Reuters expect Bank of New York Mellon Corp. (NYSE: BK) to be among those financials reporting fourth-quarter earnings growth this week. They anticipate that Bank of New York will post a profit of $0.70 per share, compared to $0.67 per share a year ago and $0.72 in the previous quarter. Revenue is expected come to $3.8 billion, about the same as it was a year ago. Bank of New York has fallen short of earnings estimates in two of the past five quarters, by as much as 11.1%. For the full year, analysts are looking for $2.78 per share (+5.8%) on $14.8 billion (+4.2%). The consensus recommendation of analysts is to buy BK, and the long-term EPS growth rate forecast is 10.7%. Shares are 48.7% lower than a year ago. Other financials expected to report quarterly earnings growth this week include SunTrust Banks Inc. (NYSE: STI) and M&T Bank Corp. (NYSE: MTB).

Continue reading The week in preview: Financials, techs lead off earnings crunch

The week in preview: Financials, techs lead off earnings crunch originally appeared on BloggingStocks on Sun, 18 Jan 2009 12:30:00 EST. Please see our terms for use of feeds.

What's holding the airline sector back, in addition to high jet fuel prices, and keeping the likes of AMR's (NYSE: AMR) American, Delta (NYSE: DAL), UAL's (NYSE: UAUA) United, Southwest (NYSE: LUV), and Continental Airlines (NYSE: CAL) from realizing their potential?

Many economists and analysts would agree that, along with other infrastructure and related investments, the nation's air traffic control system must be upgraded, if the United States seeks an air transportation system capable of maintaining a high level of safety -- and better service -- in the 21st century's more-crowded skies.

Further, that the United States has not already replaced an essentially generation-old air traffic control technology with a modern system is a serious demerit, and one that has -- through delays, cancellations, and other problems -- taken a toll on the flying public and the major carriers.

Continue reading Skies would be a lot friendlier for airlines with better air traffic control technology

Skies would be a lot friendlier for airlines with better air traffic control technology originally appeared on BloggingStocks on Sun, 03 Aug 2008 09:10:00 EST. Please see our terms for use of feeds.

Continue reading Survey shows airline passengers not happy with service

Survey shows airline passengers not happy with service originally appeared on BloggingStocks on Tue, 20 May 2008 12:38:00 EST. Please see our terms for use of feeds.

Analysts surveyed by Thomson Financial expect Southwest Airlines Co. (NYSE: LUV) and Pfizer Inc. (NYSE: PFE) to post smaller profits in the first quarter. Both companies are scheduled to report results on Wednesday.

Southwest is expected to essentially break even as far as earnings are concerned, which is down from the same period in 2007 when it earned four cents per share. The company has beat quarterly estimates recently. It only just beat the consensus third-quarter 2007 estimate, but beat the fourth-quarter estimate by 21.2%.

Dallas-based Southwest's low-cost, no-frills approach has made it one of the leading U.S. airlines. In the past year, the company's revenues were $9.8 billion and its net income totaled $645 million. Its EPS growth forecast for the year is -28.7%, worse than the industry average but better than that of rival JetBlue Airways (NASDAQ: JBLU). The consensus recommendation of analysts remains to buy Southwest.

The stock has fallen 18.5% in the past year and trades at a P/E of 14.7. Shares closed Tuesday at $12.35.

Continue reading Southwest Airlines and Pfizer Q1 profits expected to fall

Southwest Airlines and Pfizer Q1 profits expected to fall originally appeared on BloggingStocks on Wed, 16 Apr 2008 10:37:00 EST. Please see our terms for use of feeds.

Sometimes in a period of uncertainty, a look back can provide some perspective. So here are a few highlights from BloggingStocks on March 16, 2007,a year ago today.

• Business & Sports: Oil, Duke, & Notre Dame -- down: What's bigger news, who's in the March Madness or oil dropping below $57 a barrel?
• Will '300' controversy result in higher ticket sales?: Yeah, because this should be the main source of contention between the U.S. and Iran.
• An OPIC to counter OPEC: An Organization of Petroleum Importing Countries? Whatever became of that?
• Harry Potter and the 12 million order: Will the final movie in the Harry Potter series -- er, make that two movies -- generate this kind of excitment? Will anything?
• The CPI Numbers: Wall Street breathes brief sigh of relief: Wall Street could use another sigh of relief about now.
• Time magazine's facelift: Magazines? Is anyone still reading those?
• Microsoft's Ballmer takes more shots at Google: Microsoft (NASDAQ: MSFT) has a beef with Google (NASDAQ: GOOG)? Who'd have guessed?
• Heineken -- the next Starbucks?: Does Heineken still want Starbucks (NASDAQ: SBUX) as a role model?
• CNBC: Blackstone prepping for mega IPO: Remember the days when private equity was king?
• The Story You Didn't Read: Digital killed the TV star: TV is going digital? Seems like I heard something about that somewhere recently?
• Subprime investment opportunities?: Investment banks struggling with the subprime mess? The more things change ...
• JetBlue passengers grounded ... again: Last year it was JetBlue (NASDAQ: JBLU) cancellations; this year it's Southwest (NYSE: LUV) cancellations.

A year ago today on BloggingStocks originally appeared on BloggingStocks on Sun, 16 Mar 2008 09:40:00 EST. Please see our terms for use of feeds.

• DJIA 12,110.24 (-46.57; -0.38%)
• S&P500 1,308.77 (-11.88; -0.90%)
• NASDAQ 2,243.87 (-11.89; -0.53%)
• 10Y-Bond 3.483% ( -0.113%)
• See the new 52-week low club
  

Closing Bell: Two days of gains? Sorry, that is asking for too much ... originally appeared on BloggingStocks on Wed, 12 Mar 2008 17:00:00 EST. Please see our terms for use of feeds.

In the airline industry, it seems that any deal will do. Northwest Airlines Corp. (NYSE: NWA) is already fairly far along in discussions about merging with Delta Air Lines Inc. (NYSE: DAL). Now UAL Corp.'s (NASDAQ: UAUA) United Airlines is talking with Continental Airlines Inc. (NYSE: CAL). But one set of negotiations in not enough for Continental. It is also talking to AMR Corp.'s (NYSE: AMR) American Airlines, according to The Wall Street Journal (subscription required). The paper reports "the talks were exploratory, and it isn't clear they will go further."

Airlines are seeking mergers under the premise that combining companies saves costs. While that is true to some extent, the marriages also hurt customer service -- badly. Putting together incompatible reservations and service operations can take years and be extremely complex, which can make it hell for consumers who just want to take an airplane ride from here to there. Bad customer service is a sure way to drive off fliers, and that is not good for revenue.

The savings in a merger also might not be as great as imagined. Fuel costs stay the same. The number of pilots and crews may drop some, but that can also cause labor disputes and strikes that interrupt service. The number of people needed to handle customer support and processing of reservations probably cannot be cut by much, especially if retaining revenue with unhappy fliers is important.

In an industry where mergers and Chapter 11 filings have been part of the landscape for decades, combining airlines may be no panacea. It is good to remember that the two most successful carriers in the United States, American and Southwest Airlines Corp. (NYSE: LUV) have never been much enamored of merging.

Douglas A. McIntyre is an editor at 247wallst.com.

An airline marriage of Continental with American? originally appeared on BloggingStocks on Sat, 16 Feb 2008 13:40:00 EST. Please see our terms for use of feeds.

The earnings crunch is in full swing, and here are a few of the highlights of this past week's earnings coverage from BloggingStocks:

• Abbott Laboratories (NYSE: ABT) swung to a profit on the strength of drug sales.
• AK Steel Holding Corp. (NYSE: AKS) swung to a fourth-quarter profit and easily beat estimates.
• Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN) posted solid results and raised its forecast.
• Amdocs Ltd. (NYSE: DOX) reported a record quarter and reaffirmed its guidance.
• Amgen Inc. (NASDAQ: AMGN) beat exectations, but concerns remain about FDA scrutiny.
• Apple Inc. (NASDAQ: AAPL) easily beat expectations and offered revised guidance (see live blog, transcript).
• Caterpillar Inc. (NYSE: CAT) posted a solid quarter on strong international growth.
• Coach Inc. (NYSE: COH) beat estimates on strong direct-to-customer and same-store sales.
• ConocoPhillips (NYSE: COP) posted a strong fourth quarter due to rising oil prices.
• CSX Corp. (NYSE: CSX) beat expectations as increased productivity offset increased fuel costs.
• Eaton Corp. (NYSE: ETN) posted solid fourth quarter results due to growth overseas.
• Equity LifeStyle Properties Inc. (NYSE: ELS) beat expectations in the fourth quarter and offered guidance.
• Franklin Resources Inc. (NYSE: BEN) reported solid results and increased its quarterly dividend.
• Johnson & Johnson (NYSE: JNJ) posted a solid fourth quarter and affirmed its 2008 guidance.
• Microsoft Corp. (NASDAQ: MSFT) posted strong results due in part to demand for Vista.
• Nintendo Co. (OTC: NTDOY) profit soared on demand for the Wii, and the company raised is sales outlook.
• Nokia Corp. (NYSE: NOK) reported a strong fourth quarter and increased market share in handset sales.

Continue reading Earnings highlights: Apple, Microsoft, Texas Instruments, Southwest, Caterpillar, and others

Earnings highlights: Apple, Microsoft, Texas Instruments, Southwest, Caterpillar, and others originally appeared on BloggingStocks on Sat, 26 Jan 2008 08:40:00 EST. Please see our terms for use of feeds.

Here are a few more highlights of this past week's earnings coverage from BloggingStocks:

• Charles Schwab Corp. (NASDAQ: SCHW) missed earnings estimates but beat revenue expectations.
• Citigroup Inc. (NYSE: C) posted a bigger than expected loss, due to subprime-related write-downs.
• General Electric Co. (NYSE: GE) reported a solid fourth quarter, bringing a hint of optimism to Wall Street.
• JPMorgan Chase & Co. (NYSE: JPM) missed estimates due to consumer lending issues.
• Merrill Lynch & Co. (NYSE: MER) posted a bigger than expected loss due to large write-downs.
• Schlumberger Ltd. (NYSE: SLB) missed expectations due to market conditions and weather factors.
• Sears Holding (NASDAQ: SHLD) lowered its fourth quarter outlook on weak holiday sales.
• State Street Corp. (NYSE: STT) beat expectations, after a subprime-related charge is excluded.
• TD Ameritrade Corp. (NASDAQ: AMTD) net income rose sharply on increased trading activity.
• US Bancorp (NYSE: USB) missed earnings estimates, but is "well capitalized" according to the CEO.
• Washington Mutual Inc. (NYSE: WM) swung to a loss due to the credit crunch, as it had warned.
• Wells Fargo & Co. (NYSE: WFC) reported its lowest quarterly profit in years, as analysts had expected.

See additional earnings highlights. Also, Jim Cramer ponders the ennui of the new earnings season. Peter Cohan mulls whether this will be the worst earnings period for the lending industry since the Great Depression.

Upcoming results to watch for include Bank of America (NYSE: BAC), eBay Inc. (NASDAQ: EBAY), Johnson & Johnson (NYSE: JNJ), Pfizer Inc. (NYSE: PFE), Ford Motor Co. (NYSE: F), Southwest Airlines (NYSE: LUV), AT&T Inc. (NYSE: T), Caterpillar Inc. (NYSE: CAT), and Harley-Davidson Inc. (NYSE: HOG).

Visit AOL Money & Finance for more earnings coverage.

Earnings highlights: Citigroup, GE, Merrill Lynch, Sears, and others originally appeared on BloggingStocks on Sat, 19 Jan 2008 15:10:00 EST. Please see our terms for use of feeds.