Stock of the Day

March 24, 2023

Southwest Gas (SWX)

$88.47
-$0.63 (-0.7%)
Market Cap: $6.45B

About Southwest Gas

Southwest Gas Holdings, Inc., through its subsidiaries, distributes and transports natural gas in Arizona, Nevada, and California. The company operates through Natural Gas Distribution, Utility Infrastructure Services, and Pipeline and Storage segments. It also provides trenching, installation, and replacement of underground pipes, as well as maintenance services for energy distribution systems. As of December 31, 2023, it had 2,226,000 residential, commercial, industrial, and other natural gas customers. Southwest Gas Holdings, Inc. was incorporated in 1931 and is headquartered in Las Vegas, Nevada.

Today's Trend

Southwest Gas Holdings, Inc. (NYSE: SWX) shares moved higher and are trading near their 52-week high, supported by improved profitability, reaffirmed guidance and progress on major growth projects. However, the quarter included a significant revenue decline and missed some analyst estimates, which may limit upside.

  • Southwest Gas reported second-quarter net income attributable to the company of $42.1 million, compared with a $40.2 million loss a year earlier. Adjusted EPS was reported at $0.45, in line with some consensus estimates, while GAAP diluted EPS was $0.58. Southwest Gas second-quarter financial results
  • Management reaffirmed full-year 2026 continuing-operations EPS guidance of $4.17 to $4.32, broadly consistent with the approximately $4.22 analyst consensus. The company also highlighted an 8.1% utility return on equity and nearly $1 billion of available liquidity. Southwest Gas guidance reaffirmed
  • Demand for the Great Basin Expansion Project has strengthened: binding commitments now total roughly 1 billion cubic feet per day. Southwest Gas raised estimated project capital investment to about $2.3 billion and expects eventual annual incremental margin of approximately $270 million to $300 million. A California regulatory decision also provides about $40 million in additional annual revenue. Southwest Gas Great Basin expansion and regulatory update
  • Analyst coverage compared Southwest Gas with AltaGas, but the comparison did not identify a new company-specific catalyst. Institutional positioning was mixed, with some large investors adding shares and others reducing or exiting holdings. Analysis of Southwest Gas and AltaGas
  • Second-quarter revenue fell 9.6% year over year to $358.2 million, well below the roughly $416.2 million analyst expectation. Zacks also reported adjusted EPS of $0.45 versus its $0.47 consensus estimate, creating an earnings-and-revenue headwind despite the improvement in net income. Southwest Gas second-quarter earnings analysis