Report by Cmind
Cmind expects LUV is very likely to miss its Q2 earnings, scheduled for release on 27th July - their latest prediction shows that the probability of beating the consensus is 0.25. Comparing LUV against its peers (Delta Air lines, United Airlines and American Airlines) they find that the ratio Cash/Operating Profit of LUV exceeds 75 percentile and Receivables - Estimated Doubtful is below 25 percentile of the same metrics of its peers. In addition, linguistic signals indicate excessive CEO evasiveness, and CFO and analysts bullishness from earnings transcripts. Finally, LUV has missed its targets in the past two quarters.