We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Southwest Gas (SWX) Up 2.8% on Q3 Sales Beat, Earnings Miss
Read MoreHide Full Article
Southwest Gas Holdings Inc. (SWX - Free Report) recorded third-quarter 2022 operating loss per share of 5 cents, which missed the Zacks Consensus Estimate of earnings per share of 28 cents by 117.9%. The bottom line also decreased 200% from the year-ago quarter’s earnings of 5 cents per share.
GAAP loss in the reported quarter were 18 cents narrower than the year ago quarter’s loss of 19 cents.
Total Revenues
Operating revenues of $1,125.6 million surpassed the Zacks Consensus Estimate of $1,088 million by 3.5%. The top line improved by 26.7% from $888.7 million in the prior-year quarter. Revenues also surpassed our estimate of $1,085.5 million by 0.4%.
Courtesy of the better-than-expected top-line performance of Southwest Gas Holdings, the market reacted positively and the company’s shares gained 2.8% post third-quarter earnings release.
Southwest Gas Corporation Price, Consensus and EPS Surprise
Total operating expenses in the third quarter amounted to $307.1 million, up 15.9% from the year-ago figure of $264.9 million, due to an increase in the net cost of gas sold, and higher operations and maintenance expenses.
The operating loss was $3.2 million, narrower than the prior-quarter’s loss of $9.1 million.
Financial Highlights
Cash and cash equivalents as of Sep 30, 2022 were $175.3 million compared with $222.7 million as of Dec 31, 2021.
The long-term debt, less current maturities, amounted to $5,865.5 million as of Sep 30, 2022 compared with $4,115.7 million as of Dec 31, 2021.
Southwest Gas’ net cash provided by operating activities for the first nine months of 2022 was $303.5 million compared to $51.5 million in the year-ago period.
Guidance
Natural Gas Distribution segment raised its 2022 capital expenditures in support of customer growth, system improvements and pipe replacement programs to $650-$675 million from its previous range of $600-$650 million. To strengthen operations, this segment aims to invest $2.5-$3.5 billion in next five years.
Utility Infrastructure Services segment expects total revenues in the range of $2.6-$2.7 billion in 2022 and $2.8-$3 billion in 2023.
Zacks Rank
Southwest Gas carries a Zacks Rank #4 (Sell) currently.
Sempra Energy’s (SRE - Free Report) third-quarter 2022 adjusted earnings per share (EPS) came in at $1.97, which beat the Zacks Consensus Estimate of $1.79 by 10.1%.
The long-term (three- to five-year) earnings growth of SRE is currently pegged at 5.71%. The Zacks Consensus Estimate for SRE’s 2022 earnings implies year-over-year growth of 3.9%.
DTE Energy Company (DTE - Free Report) reported third-quarter 2022 operating EPS of $1.60, which surpassed the Zacks Consensus Estimate of $1.58 by 1.3%.
The long-term earnings growth of DTE is currently pegged at 6%. The Zacks Consensus Estimate for DTE’s 2022 earnings implies year-over-year growth of 0.5%.
ONE Gas Inc. (OGS - Free Report) reported third-quarter 2022 operating earnings per share of 44 cents, which surpassed the Zacks Consensus Estimate of 41 cents by 7.3%.
The long-term earnings growth of OGS is currently pegged at 5%. The Zacks Consensus Estimate for OGS’ 2022 earnings implies year-over-year growth of 5.7%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Southwest Gas (SWX) Up 2.8% on Q3 Sales Beat, Earnings Miss
Southwest Gas Holdings Inc. (SWX - Free Report) recorded third-quarter 2022 operating loss per share of 5 cents, which missed the Zacks Consensus Estimate of earnings per share of 28 cents by 117.9%. The bottom line also decreased 200% from the year-ago quarter’s earnings of 5 cents per share.
GAAP loss in the reported quarter were 18 cents narrower than the year ago quarter’s loss of 19 cents.
Total Revenues
Operating revenues of $1,125.6 million surpassed the Zacks Consensus Estimate of $1,088 million by 3.5%. The top line improved by 26.7% from $888.7 million in the prior-year quarter. Revenues also surpassed our estimate of $1,085.5 million by 0.4%.
Courtesy of the better-than-expected top-line performance of Southwest Gas Holdings, the market reacted positively and the company’s shares gained 2.8% post third-quarter earnings release.
Southwest Gas Corporation Price, Consensus and EPS Surprise
Southwest Gas Corporation price-consensus-eps-surprise-chart | Southwest Gas Corporation Quote
Highlights of the Release
Total operating expenses in the third quarter amounted to $307.1 million, up 15.9% from the year-ago figure of $264.9 million, due to an increase in the net cost of gas sold, and higher operations and maintenance expenses.
The operating loss was $3.2 million, narrower than the prior-quarter’s loss of $9.1 million.
Financial Highlights
Cash and cash equivalents as of Sep 30, 2022 were $175.3 million compared with $222.7 million as of Dec 31, 2021.
The long-term debt, less current maturities, amounted to $5,865.5 million as of Sep 30, 2022 compared with $4,115.7 million as of Dec 31, 2021.
Southwest Gas’ net cash provided by operating activities for the first nine months of 2022 was $303.5 million compared to $51.5 million in the year-ago period.
Guidance
Natural Gas Distribution segment raised its 2022 capital expenditures in support of customer growth, system improvements and pipe replacement programs to $650-$675 million from its previous range of $600-$650 million. To strengthen operations, this segment aims to invest $2.5-$3.5 billion in next five years.
Utility Infrastructure Services segment expects total revenues in the range of $2.6-$2.7 billion in 2022 and $2.8-$3 billion in 2023.
Zacks Rank
Southwest Gas carries a Zacks Rank #4 (Sell) currently.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
Sempra Energy’s (SRE - Free Report) third-quarter 2022 adjusted earnings per share (EPS) came in at $1.97, which beat the Zacks Consensus Estimate of $1.79 by 10.1%.
The long-term (three- to five-year) earnings growth of SRE is currently pegged at 5.71%. The Zacks Consensus Estimate for SRE’s 2022 earnings implies year-over-year growth of 3.9%.
DTE Energy Company (DTE - Free Report) reported third-quarter 2022 operating EPS of $1.60, which surpassed the Zacks Consensus Estimate of $1.58 by 1.3%.
The long-term earnings growth of DTE is currently pegged at 6%. The Zacks Consensus Estimate for DTE’s 2022 earnings implies year-over-year growth of 0.5%.
ONE Gas Inc. (OGS - Free Report) reported third-quarter 2022 operating earnings per share of 44 cents, which surpassed the Zacks Consensus Estimate of 41 cents by 7.3%.
The long-term earnings growth of OGS is currently pegged at 5%. The Zacks Consensus Estimate for OGS’ 2022 earnings implies year-over-year growth of 5.7%.