Dallas, Texas-based Southwest Airlines Co. (LUV) is a passenger airline company offering scheduled air transportation services in the U.S. and near-international markets. Valued at $18.7 billion by market cap, the company offers inflight entertainment, the Rapid Rewards loyalty program, digital platforms like SWABIZ for business travel, and extra services including Southwest's EarlyBird Check-In, upgraded boarding, and pet and unaccompanied minor transportation. The airline giant is expected to announce its fiscal second-quarter earnings for 2025 on Thursday, Jul. 24.

Ahead of the event, analysts expect LUV to report a profit of $0.53 per share on a diluted basis, down 8.6% from $0.58 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. 

For the full year, analysts expect LUV to report EPS of $1.14, up 18.8% from $0.96 in fiscal 2024. Its EPS is expected to rise 119.3% year over year to $2.50 in fiscal 2026. 

LUV stock has outperformed the S&P 500 Index’s ($SPX) 11.9% gains over the past 52 weeks, with shares up 25.5% during this period. Similarly, it outperformed the Industrial Select Sector SPDR Fund’s (XLI) 22.8% rise over the same time frame.

On Apr. 23, LUV shares closed up more than 3% after reporting its Q1 results. Its adjusted loss of $0.13 per share beat Wall Street expectations of adjusted loss of $0.18 per share. The company’s revenue was $6.43 billion, beating Wall Street forecasts of $6.40 billion.

Analysts’ consensus opinion on LUV stock is cautious, with a “Hold” rating overall. Out of 21 analysts covering the stock, five advise a “Strong Buy” rating, one suggests a “Moderate Buy,” nine give a “Hold,” one advocates a “Moderate Sell,” and five indicate a “Strong Sell.” While LUV currently trades above its mean price target of $29.89, the Street-high price target of $42 suggests an upside potential of 24.2%.