Southwest Gas (NYSE:SWX) Posts Earnings Results, Hits Estimates

Southwest Gas (NYSE:SWX) posted its quarterly earnings results on Wednesday. The utilities provider reported $0.45 EPS for the quarter, hitting the consensus estimate of $0.45, Briefing.com reports. Southwest Gas had a net margin of 19.95% and a return on equity of 6.95%. During the same period in the prior year, the firm posted ($0.18) EPS. The firm’s revenue was down 9.6% on a year-over-year basis. Southwest Gas updated its FY 2026 guidance to 4.170-4.320 EPS.

Here are the key takeaways from Southwest Gas’ conference call:

• Adjusted EPS rose to $0.45 from $0.37 year over year, supported by lower HoldCo interest expense after debt repayment, higher interest income, rate relief, customer growth, and lower operating costs.
• Regulatory progress continued across all three jurisdictions, including approximately $40 million of incremental annual California revenue, a Nevada rate case moving toward an October 2026 effective date, and Arizona’s case remaining on track for April 2027.
• Great Basin’s 2028 expansion reached approximately 1 Bcf per day of contracted demand, while broader expressions of interest increased to 1.8 Bcf per day; the company now expects approximately $270 million-$300 million of annual margin upon completion.
• The larger 48-inch Great Basin pipeline design increased estimated project capital spending to $2.3 billion, up roughly $600 million from prior expectations, potentially creating future financing and equity needs despite management’s confidence in holding-company leverage capacity.
• Southwest Gas reaffirmed its 2026 and long-term guidance, including approximately $1.25 billion of 2026 capital expenditures and a projected 9.5%-11.5% rate-base CAGR through 2030; the expanded Great Basin project is expected to be incorporated into the long-term plan in February.

Southwest Gas Stock Up 1.8%

Shares of SWX traded up $1.57 during midday trading on Wednesday, hitting $90.62. 808,656 shares of the company’s stock traded hands, compared to its average volume of 579,532. The company has a current ratio of 1.45, a quick ratio of 1.32 and a debt-to-equity ratio of 0.84. The stock has a market capitalization of $6.56 billion, a price-to-earnings ratio of 13.13, a price-to-earnings-growth ratio of 2.13 and a beta of 0.57. Southwest Gas has a 1 year low of $75.75 and a 1 year high of $94.46. The firm’s fifty day moving average is $89.62 and its 200-day moving average is $88.40.

Southwest Gas Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Monday, August 17th will be given a dividend of $0.645 per share. The ex-dividend date of this dividend is Monday, August 17th. This represents a $2.58 dividend on an annualized basis and a dividend yield of 2.8%. Southwest Gas’s dividend payout ratio is presently 37.39%.

Analysts Set New Price Targets

SWX has been the topic of a number of research analyst reports. Citigroup upped their target price on shares of Southwest Gas from $99.00 to $106.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. UBS Group set a $100.00 price target on Southwest Gas in a research note on Thursday, May 7th. Wells Fargo & Company initiated coverage on shares of Southwest Gas in a research note on Monday, May 11th. They issued an “overweight” rating and a $105.00 price objective for the company. Mizuho raised their target price on shares of Southwest Gas from $96.00 to $98.00 and gave the company an “outperform” rating in a research report on Tuesday, June 9th. Finally, Weiss Ratings reiterated a “buy (a-)” rating on shares of Southwest Gas in a research note on Monday. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Buy” and a consensus target price of $97.29.

Hedge Funds Weigh In On Southwest Gas

Several hedge funds have recently modified their holdings of SWX. EverSource Wealth Advisors LLC increased its stake in Southwest Gas by 223.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 440 shares of the utilities provider’s stock valued at $33,000 after purchasing an additional 304 shares in the last quarter. Advisory Services Network LLC acquired a new position in shares of Southwest Gas in the 3rd quarter valued at $72,000. Daiwa Securities Group Inc. raised its stake in Southwest Gas by 21.3% in the 2nd quarter. Daiwa Securities Group Inc. now owns 939 shares of the utilities provider’s stock worth $70,000 after acquiring an additional 165 shares during the last quarter. Danske Bank A S acquired a new stake in Southwest Gas during the 3rd quarter worth about $94,000. Finally, Kestra Advisory Services LLC acquired a new position in shares of Southwest Gas in the fourth quarter valued at about $99,000. Institutional investors and hedge funds own 92.77% of the company’s stock.

About Southwest Gas

Southwest Gas Corporation (NYSE: SWX) is a publicly traded natural gas utility that provides regulated gas distribution services to residential, commercial, industrial and electric generation customers. The company’s core activities include the transportation, distribution and sale of natural gas through an extensive network of pipelines, service lines and metering facilities. Southwest Gas also offers related services such as system maintenance, pipeline safety inspections, emergency response and line extensions to support customer growth and ensure reliable gas delivery.

Founded in 1931 in southern Nevada, Southwest Gas has grown through strategic acquisitions and organic expansion to become one of the nation’s larger natural gas utilities by customer count.