Southwest Airlines (LUV.US) stock fell more than 4.0%, handing back some of the previous session’s strong gains after the company posted mixed quarterly results. Excluding special items, the airline reported a quarterly loss of 35 cents per share, while analysts' expected a much lower figure of 23 cents per share. On the other hand, revenue slightly beat market estimates. Sales jumped nearly 300% from a year earlier to $4 billion, while market expected 291% increase to $3.939 billion. Still sales figures remain 32% lower compared to the same period in 2019. Net income for the second quarter totaled $348 million, compared with a $915 million loss a year earlier. The airline said it would remain profitable for the rest of the year and at the same time warned about higher fuel prices and costs related to bringing back employees from voluntary leave in the current quarter.
Southwest Airlines (LUV.US) stock dropped over 4% today following a failed attempt of breaking above the 200 SMA (red line) which coincides with the upper limit of the descending channel. If the current sentiment prevails, downward move may accelerate towards support at $48.72 which is strengthened by 38.2 Fibonacci retracement of the last upward wave which started back in May 2020. Source: xStation5
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