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SWA 4th QTR Profit

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Benhuntn

Benhuntn

Deer Fear Me
Joined
Jul 2, 2002
Posts
1,127
SWA is expected to announce another quarterly profit of .13 cents a share. Growth plans, low costs, and low fares make SWA a candidate for excellent stock price growth in '07.
 
The company still needs to do more "stock buy-backs", there's still too many outstanding shares. They did two buy backs last year, hopefully they'll do the same if not more this year.
 
Benhuntn said:
SWA is expected to announce another quarterly profit of .13 cents a share. Growth plans, low costs, and low fares make SWA a candidate for excellent stock price growth in '07.
Click to expand...
Wow...

.13 cents per share seems pretty low. Are you sure you didn't mean .13 dollars per share (or maybe just 13 cents per share)?
 
Benhuntn;1224358 Growth plans said:
It better. A few years back I bought $2000 worth and $300 of Airtran. I made 600% on Airtran. SWA hasn't done squat. I should have bought $2000 of da Tranny.
Click to expand...
 
luv


never buy swa stock (at least for now)
 
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Benhuntn said:
SWA is expected to announce another quarterly profit of .13 cents a share. Growth plans, low costs, and low fares make SWA a candidate for excellent stock price growth in '07.
Click to expand...
Net profit was .07 per share or $57M, down 19% from a year earlier. Actual profit was $96M or .12 per share and was reduced to .07 by a one time write down in hedge contract valuations. Hedging positions gave them a $118M gain for the Q, but with their average fuel cost of $50bbl for 1st Q 2007, they will have a tough time continuing that trend if prices continue to fall.

The key will be customer response on continued necessary ticket hikes. Kelly has said he has already seen some resistance at some stations, and if emboldened competitors start to undercut SWA, it could make for some rough times ahead. Time will tell.

:pimp:​
 
Lowecur.....I just don't get it...a while back you said that we would be hurting because oil prices would go up.............now you are saying that we will be hurting because oil prices are going down........Which is it?


I think that Gary has been adjusting his game plan all along. (ticket prices) and doing quite well with market conditions.

:)
 
The big problem here is the company stock. Based on the current trend SWA is going to have $15 billion in assets with $2 billion in cash, and be worth $5 billion for the controlling stake in stock. This may be the greatest deal in the history of LBO, you could probably get at least $20 billion if you raid the company. This is the downfall of not having any debt.
 
I think we should buy Delta. Give the guys a fair seniority shake, dump the Maddogs and there you have it. No fences. No animosity.

Gup
 
LearAv8r said:
Lowecur.....I just don't get it...a while back you said that we would be hurting because oil prices would go up.............now you are saying that we will be hurting because oil prices are going down........Which is it? I like either one, that way I'm not wrong.:D


I think that Gary has been adjusting his game plan all along. (ticket prices) and doing quite well with market conditions.

:)
Click to expand...
Yes, he is. The other carriers seem very happy to go along with the ticket increases. Consolidation will be quite fruitful for SWA as they purchase assets and fill in gaps left behind. They will do quite nicely as long the legacy's are content not to retake marketshare.

:pimp:​
 
From webcast

lowecur said:
Net profit was .07 per share or $57M, down 19% from a year earlier. Actual profit was $96M or .12 per share and was reduced to .07 by a one time write down in hedge contract valuations. Hedging positions gave them a $118M gain for the Q, but with their average fuel cost of $50bbl for 1st Q 2007, they will have a tough time continuing that trend if prices continue to fall.

The key will be customer response on continued necessary ticket hikes. Kelly has said he has already seen some resistance at some stations, and if emboldened competitors start to undercut SWA, it could make for some rough times ahead. Time will tell.


:pimp:​
Click to expand...

What he said plus:
2006 profit was 587 million.
2007 95% hedged at $50.
2008 65% hedged at $49.
2009 45% hedged at $51.
Hedges until 2012 at different percentages at approx $63.
Added 36 aircraft in 2006 to bring total to 481.
2007 adding 7 planes 1Q, 10 planes 2Q, 11 planes 3Q, 9 planes 4Q. 7.7% growth for 2007.
PHL adding 5 gates.
DEN want large piece of 8+ gates being built.
Bought back $800mil in stock.
Cost minus fuel was flat.
2006 Load Factor 73%.
68 employees/aircraft
 
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Hey, I am no mathematician but even I know the difference between .13 cents and .13 dollars!

That is some funny stuff.

FJ
 
Profit baby!!!! I didn't start the thread - I don't see any of you A holes jumping that guys $hit. Take that $$$$$$ Unfair.
 

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