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Southwest Gas (SWX) Q2 Earnings & Revenues Outpace Estimates

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Southwest Gas Holdings Inc. (SWX - Free Report) recorded second-quarter 2023 operating earnings of 47 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 20.5%. The bottom line increased 104.3% from the year-ago quarter’s 23 cents.

GAAP earnings were 40 cents per share against a loss of 10 cents in the prior-year period.

Total Revenues

Operating revenues totaled $1,293.6 million in the quarter, which outpaced the Zacks Consensus Estimate of $1,119 million by 15.6%. The top line improved 12.9% from $1,146.1 million in the prior-year quarter.

Southwest Gas Corporation Price, Consensus and EPS Surprise 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 were $1,208.9 million, up 9.9% from $1,100.5 million in the comparable period of 2022. This increase was due to a hike in the net cost of gas sold and utility infrastructure services expenses.

Total operating income amounted to $84.8 million, up 85.7% from the year-ago quarter’s $45.7 million.

Financial Highlights

Cash and cash equivalents, as of Jun 30, 2023, were $221.4 million compared with $123.1 million as of Dec 31, 2022.

The long-term debt, less current maturities, amounted to $5,284.8 million as of Jun 30, 2023, compared with $4,403.3 million as of Dec 31, 2022.

Southwest Gas’ net cash provided by operating activities for the six months ended Jun 30, 2023 was $12.2 million compared with $263.6 million cash provided in the year-ago period.

2023 Guidance

Natural Gas Distribution segment capital expenditure guidance was increased to $700-$720 million from $665-$685 million to support customer growth, system improvements and pipe replacement programs.

For 2023-2025, capital expenditure is expected to be $2 billion. The segment predicts net income in the range of $205-$215 million.

Zacks Rank

Southwest Gas currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases

ONE Gas, Inc. (OGS - Free Report) reported second-quarter 2023 operating EPS of 58 cents, which missed the Zacks Consensus Estimate of 59 cents by 1.7%.

The consensus estimate for 2023 EPS stands at $4.13, indicating year-over-year growth of 1.2%. OGS’ long-term (three to five years) earnings growth rate is pegged at 5%.

Sempra Energy (SRE - Free Report) reported second-quarter 2023 adjusted earnings of $1.88 per share, which beat the Zacks Consensus Estimate of $1.72 by 9.3%.

The consensus estimate for 2023 EPS stands at $8.93, indicating a year-over-year decrease of 3%. SRE’s long-term earnings growth rate is estimated to be 4.9%.

NorthWest Natural (NWN - Free Report) reported second-quarter 2023 earnings of 3 cents per share in contrast to the Zacks Consensus Estimate of a loss of 7 cents. The bottom line beat the consensus mark by 142.9%.

The consensus estimate for 2023 EPS stands at $2.70, implying a year-over-year improvement of 6.3%. SR’s long-term earnings growth rate is projected to be 3.7%.


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