Why Southwest Airlines Dropped 11% in July
Shares of Southwest Airlines (NYSE: LUV) fell 11% in July according to S&P Market Intelligence due, in large part, to what investors interpreted as a lackluster second-quarter earnings report. Unswayed by the company's record quarterly earnings per share, excluding special items, investors sent the stock on a sharp reversal in course as shares had soared more than 24% from the start of the year through June.
Besides reporting all-time high EPS, the company also booked record quarterly passenger and operating revenue. However, investors were not impressed. The company also reported a precipitous 33% year-over-year decrease in operating cash flow. Due, in part, to higher fuel costs and the unfavorable effect of the conversion to a new reservation system, total operating expenses rose 9.4% compared to Q2 2016.
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Source: Fool.com
Southwest Airlines Co. Stock
Currently there is a rather positive sentiment for Southwest Airlines Co. with 12 Buy predictions and 7 Sell predictions.
With a target price of 32 € there is a slightly positive potential of 12.38% for Southwest Airlines Co. compared to the current price of 28.48 €.
