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Why Is Southwest Gas (SWX) Down 2.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Southwest Gas (SWX - Free Report) . Shares have lost about 2.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Southwest Gas due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Southwest Gas Q1 Earnings Miss Estimates, Sales Beat
Southwest Gas Holdings Inc. recorded first-quarter 2024 operating earnings of $1.37 per share, which missed the Zacks Consensus Estimate of $1.70 by 19.4%. The bottom line also decreased 22.6% from the year-ago quarter’s figure of $1.77.
Total Revenues
Operating revenues totaled $1.581 billion in the quarter, which surpassed the Zacks Consensus Estimate of $1.578 billion by 0.2%. However, the top line decreased 1.4% from $1.603 billion in the prior-year quarter.
Highlights of the Release
Utility infrastructure services expenses were $515.6 million, down 14.6% from the year-ago quarter’s level of $603.7 million.
The total operating loss was $21.9 million against the income of $11.7 million in the year-ago quarter.
Total system throughput in the first quarter was 76.8 million dekatherms, down 13.1% year over year.
On Apr 22, 2024, Southwest Gas announced the closing of Centuri's initial public offering (IPO) of 14,260,000 shares of Centuri's common stock, including shares issued as part of the full exercise of the underwriters' over-allotment option, at an IPO price of $21 per share.
Financial Highlights
Cash and cash equivalents, as of Mar 31, 2024, were $457.9 million compared with $106.5 million as of Dec 31, 2023.
The long-term debt, less current maturities, amounted to $4.65 billion as of Mar 31, 2024 compared with $4.61 billion as of Dec 31, 2023.
Southwest Gas’ net cash provided by operating activities in the first three months of 2024 was $543.7 million against cash used of $185.7 million in the year-ago period.
2024 Guidance
Southwest Gas’ guidance for the Natural Gas Distribution segment’s net income in 2024 is in the range of $228-$238 million. The 2024 capital expenditure is expected to be $830 million to support customer growth, system improvements and pipe replacement programs.
Capital expenditure is expected to be $2.4 billion for 2024-2026. The utility rate base is projected to witness a CAGR in the range of 6.5-7.5%.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Southwest Gas has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Southwest Gas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Southwest Gas (SWX) Down 2.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Southwest Gas (SWX - Free Report) . Shares have lost about 2.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Southwest Gas due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Southwest Gas Q1 Earnings Miss Estimates, Sales Beat
Southwest Gas Holdings Inc. recorded first-quarter 2024 operating earnings of $1.37 per share, which missed the Zacks Consensus Estimate of $1.70 by 19.4%. The bottom line also decreased 22.6% from the year-ago quarter’s figure of $1.77.
Total Revenues
Operating revenues totaled $1.581 billion in the quarter, which surpassed the Zacks Consensus Estimate of $1.578 billion by 0.2%. However, the top line decreased 1.4% from $1.603 billion in the prior-year quarter.
Highlights of the Release
Utility infrastructure services expenses were $515.6 million, down 14.6% from the year-ago quarter’s level of $603.7 million.
The total operating loss was $21.9 million against the income of $11.7 million in the year-ago quarter.
Total system throughput in the first quarter was 76.8 million dekatherms, down 13.1% year over year.
On Apr 22, 2024, Southwest Gas announced the closing of Centuri's initial public offering (IPO) of 14,260,000 shares of Centuri's common stock, including shares issued as part of the full exercise of the underwriters' over-allotment option, at an IPO price of $21 per share.
Financial Highlights
Cash and cash equivalents, as of Mar 31, 2024, were $457.9 million compared with $106.5 million as of Dec 31, 2023.
The long-term debt, less current maturities, amounted to $4.65 billion as of Mar 31, 2024 compared with $4.61 billion as of Dec 31, 2023.
Southwest Gas’ net cash provided by operating activities in the first three months of 2024 was $543.7 million against cash used of $185.7 million in the year-ago period.
2024 Guidance
Southwest Gas’ guidance for the Natural Gas Distribution segment’s net income in 2024 is in the range of $228-$238 million. The 2024 capital expenditure is expected to be $830 million to support customer growth, system improvements and pipe replacement programs.
Capital expenditure is expected to be $2.4 billion for 2024-2026. The utility rate base is projected to witness a CAGR in the range of 6.5-7.5%.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Southwest Gas has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Southwest Gas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.