Southwest Shares Drop Despite Strong Earnings, Elliott Deal: CEO Warns Of Boeing Delivery Delays If Strike Continues
Portfolio Pulse from Piero Cingari
Southwest Airlines shares fell by 3% despite strong earnings and a deal with Elliott Investment Management. Concerns about Boeing delivery delays due to a machinists' strike overshadowed positive earnings and a board restructuring agreement.
October 24, 2024 | 4:02 pm
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NEUTRAL IMPACT
Pierre Breber, former CFO of Chevron, is among the new board members at Southwest Airlines as part of the Elliott deal.
Pierre Breber's appointment to Southwest's board is part of the Elliott deal, but it has minimal direct impact on Chevron's stock.
CONFIDENCE 80
IMPORTANCE 20
RELEVANCE 20
NEUTRAL IMPACT
Dave Grissen, former Marriott executive, is among the new board members at Southwest Airlines as part of the Elliott deal.
Dave Grissen's appointment to Southwest's board is part of the Elliott deal, but it has minimal direct impact on Marriott's stock.
CONFIDENCE 80
IMPORTANCE 20
RELEVANCE 20
NEGATIVE IMPACT
Boeing faces potential delivery delays for Southwest Airlines due to an ongoing machinists' strike, which could impact its production and financial performance.
The ongoing machinists' strike at Boeing poses a risk to aircraft deliveries for Southwest, potentially affecting Boeing's production schedule and financial outcomes.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 80
NEGATIVE IMPACT
Southwest Airlines reported better-than-expected earnings and reached a deal with Elliott Investment Management, but shares fell 3% due to concerns over Boeing delivery delays.
Despite strong earnings and a positive deal with Elliott, investor concerns over potential Boeing delivery delays due to a strike led to a 3% drop in Southwest's stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100