Southwest's (NYSE:LUV) EPS Slashed on Weak Guidance

Southwest Airlines (NYSE:LUV) had their first quarter and full year 2011 EPS estimates cut by Barclays, citing weaker-than-expected guidance.

Barclays says, "4Q numbers from LUV were a bit ahead of our estimates, but in line with consensus. While January RASM guidance was very much in line with our expectations, full quarter guidance was softer than we anticipated. Guidance also suggests that the other revenue that surprised us in the quarter is unlikely to repeat in 1Q11...Our 1Q11E EPS declines from $0.08 to $0.02, while FY11E declines from $0.80 to $0.72. The existing consensus of EPS of $0.07 in 1Q11 and $0.92 for the year appear difficult to achieve at this stage."

Barclays reiterates an "Equalweight" rating on Southwest (LUV), which closed Friday at $12.57, down $0.22, or 1.72 percent. Barclays has a price target of $16 on Southwest.