southwest posts
FeedPosted Apr 4th 2011 5:30PM by Paul Foster (RSS feed)
Filed under: KB HOME (KBH), Southwest Airlines (LUV), Options
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
Posted Oct 25th 2010 11:30AM by Eric Buscemi (RSS feed)
Filed under: Analyst Reports, Analyst Upgrades and Downgrades, Microsoft (MSFT), Home Depot (HD), Citigroup Inc. (C), Carnival Corp (CCL), Southwest Airlines (LUV), Analyst Initiations, JetBlue Airways (JBLU)
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 ...
Posted Jun 14th 2010 12:00PM by Eric Buscemi (RSS feed)
Filed under: Analyst Reports, Analyst Upgrades and Downgrades, Southwest Airlines (LUV), AMR Corp (AMR), Contl Airlines'B' (CAL), Analyst Initiations, Akamai Technologies (AKAM), JetBlue Airways (JBLU), Delta Air Lines (DAL), Lions Gate Entertainment (LGF)
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 ...
Posted Nov 10th 2009 4:15PM by Tom Johansmeyer (RSS feed)
Filed under: Southwest Airlines (LUV), US Airways Group (LCC), UAL Corp (UAUA), JetBlue Airways (JBLU), Delta Air Lines (DAL)
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
Posted Sep 17th 2009 5:00PM by Tom Johansmeyer (RSS feed)
Filed under: Southwest Airlines (LUV), AMR Corp (AMR), UAL Corp (UAUA), Delta Air Lines (DAL)
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
Posted Jul 30th 2009 11:40AM by Tom Johansmeyer (RSS feed)
Filed under: Southwest Airlines (LUV), AMR Corp (AMR), JetBlue Airways (JBLU), Delta Air Lines (DAL)
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?
Posted Jan 24th 2009 2:40PM by Trey Thoelcke (RSS feed)
Filed under: Earnings Reports, Google (GOOG), eBay (EBAY), International Business Machines (IBM), Advanced Micro Dev (AMD), Southwest Airlines (LUV), Lockheed Martin (LMT), AMR Corp (AMR), UAL Corp (UAUA)
Continue reading Earnings highlights: eBay, Google, IBM, Southwest, UAL, AMR, Northern Trust and others
Posted Jan 22nd 2009 10:45AM by Peter Cohan (RSS feed)
Filed under: Earnings Reports, Southwest Airlines (LUV)
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.
Posted Jan 18th 2009 12:30PM by Trey Thoelcke (RSS feed)
Filed under: Earnings Reports, Forecasts, Google (GOOG), Apple Inc (AAPL), General Electric (GE), International Business Machines (IBM), Advanced Micro Dev (AMD), Bank of New York (BK), Potash Corp. of Saskatchewan (POT), U.S. Bancorp (USB)
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
Posted Aug 3rd 2008 9:10AM by Joseph Lazzaro (RSS feed)
Filed under: Industry, Consumer Experience, Southwest Airlines (LUV), AMR Corp (AMR), Contl Airlines'B' (CAL), UAL Corp (UAUA)
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
Posted May 20th 2008 12:38PM by Michael Fowlkes (RSS feed)
Filed under: Bad News, Products and Services, Consumer Experience, Competitive Strategy, Employees, Southwest Airlines (LUV), AMR Corp (AMR)

We have all been there before, standing beside the luggage conveyor belt after a long flight, quietly praying for our luggage to magically pop out of that little window and slide our way. When our luggage finally shows up, it typically means the end of a long day that generally has the potential to stress out most travelers.
For me at least, as long as I get my luggage I am satisfied with my trip. But for a lot of us, there are several factors we use to grade the airlines, and a recent survey shows that
customer dissatisfaction is running at near record level lows. These factors include anything from planes leaving and arriving on time, to the service inside the plane from fight attendants, to just how easily mishaps get handled by the agents at the ticketing desks.
Having lived in Europe the past few years, I have been no stranger to the long distance flight back and forth to the States. I suppose I have traveled roughly 100,000 miles on airlines over the past couple of years, and I have to say that for the most part I have had very pleasant experiences. My girlfriend was unfortunate enough to have lost some luggage for a week over this past Christmas, but other than that, I have been pretty lucky.
Continue reading Survey shows airline passengers not happy with service
Posted Apr 16th 2008 10:37AM by Trey Thoelcke (RSS feed)
Filed under: Earnings Reports, Forecasts, Pfizer (PFE), Southwest Airlines (LUV)
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
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