Southwest Airlines Co (NYSE: LUV) lost some altitude Thursday morning, amid improved quarterly earnings.
The Dallas-based carrier touted record fourth-quarter net income and earnings per diluted share of $1.9 billion and $3.18, respectively. Annual net income and earnings per diluted share were $3.5 billion and $5.79, respectively, and both enjoying record highs.
Analysts expected the airline to report quarterly earnings at $0.83 per share on revenue of $5.23 billion before the opening bell.
Southwest also boasted annual operating cash flow of $3.9 billion, and annual free cash flow of $1.8 billion. Returned approximately $1.9 billion to shareholders through a combination of $274 million in dividends and $1.6 billion in share repurchases
CEO Gary C. Kelly said “Our strong fourth quarter earnings performance capped another year of extraordinary achievements, including 45 straight years of profitability. Last week, for the 24th consecutive year, Southwest was named to FORTUNE's 2018 list of World's Most Admired Companies.
"Our strong profits, cash flow, and financial position enabled us to deploy capital wisely and sustain high returns on invested capital. We made significant progress modernizing our fleet, investing in technology and facilities, and returning value in excess of our free cash flow to shareholders.
Kelly concluded, "We begin 2018 focused on our goal to expand margins and profits, excluding special items. Our balance sheet and liquidity remain strong, with manageable debt service and capital spending this year."
Southwest Airlines shares dropped $2.11, or 3.4%, to $60.10 as the clock approached noon ET on Thursday.
