Southwest Gas (NYSE:SWX) Releases Earnings Results

Southwest Gas (NYSE:SWX) issued its quarterly earnings data on Wednesday. The utilities provider reported $0.20 EPS for the quarter, topping analysts’ consensus estimates of $0.14 by $0.06, Zacks reports. Southwest Gas had a return on equity of 6.79% and a net margin of 31.85%. The company had revenue of $298.18 million for the quarter, compared to analysts’ expectations of $346.50 million. During the same quarter in the previous year, the firm posted $3.74 earnings per share. The firm’s quarterly revenue was down 5.9% on a year-over-year basis.

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

• Adjusted EPS from continuing operations rose to $0.20 in the third quarter from $0.06 a year earlier, while year-to-date EPS increased 18% to $2.69. Management reaffirmed 2026 guidance of $4.17–$4.32 per share and its 12%–14% long-term growth target.
• Final California and Nevada rate decisions together authorize about $80 million in incremental annual revenue, with new rates effective in 2026. The company said these outcomes should support results as the full rate relief flows through.
• Arizona remains a key regulatory uncertainty: staff recommended $53 million–$58 million in annual revenue, below Southwest Gas’s updated $91.3 million request, and the consumer advocate opposes the proposed formula-rate mechanism. Hearings are scheduled for December, with rates anticipated to take effect in April 2027.
• Great Basin’s planned $2.3 billion expansion has binding shipper commitments for 1 Bcf per day, which management expects to support $270 million–$300 million of annual margin beginning with a targeted fourth-quarter 2028 in-service date. The FERC application is on track for year-end, though $600 million of the project estimate and associated margin are not included in current long-term guidance.

Southwest Gas Stock Performance

Shares of SWX traded down $1.99 during trading hours on Thursday, reaching $90.34. 361,459 shares of the company’s stock traded hands, compared to its average volume of 597,788. Southwest Gas has a twelve month low of $78.26 and a twelve month high of $94.46. The business’s fifty day simple moving average is $87.08 and its two-hundred day simple moving average is $88.29. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.12 and a quick ratio of 0.99. The firm has a market capitalization of $6.55 billion, a price-to-earnings ratio of 11.79, a P/E/G ratio of 1.96 and a beta of 0.55.

Southwest Gas Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Monday, November 16th will be given a dividend of $0.6450 per share. This represents a $2.58 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Monday, November 16th. Southwest Gas’s payout ratio is 33.68%.

Key Stories Impacting Southwest Gas

Here are the key news stories impacting Southwest Gas this week:

• Positive Sentiment: Adjusted earnings were $0.20 per share, above estimates of $0.14–$0.17 and up from $0.06 a year earlier. The company attributed the beat in part to lower interest costs. Zacks earnings report
• Positive Sentiment: Southwest Gas reaffirmed its 2026 adjusted EPS outlook of $4.17–$4.32. Its $2.3 billion Great Basin expansion remains on track, with a key regulatory filing planned for the fourth quarter; Nevada and California rate cases are complete, while Arizona’s case is advancing. Guidance and Great Basin expansion Third-quarter results and rate-case update
• Negative Sentiment: Quarterly revenue was $298.2 million, below the roughly $346.5 million consensus and down 5.9% year over year. The revenue shortfall and weaker sales could weigh on sentiment despite the EPS beat. Q3 adjusted earnings and revenue

Wall Street Analyst Weigh In

SWX has been the topic of several analyst reports. Wolfe Research initiated coverage on Southwest Gas in a report on Friday, October 9th. They set a “peer perform” rating and a $92.00 target price on the stock. Scotiabank assumed coverage on Southwest Gas in a report on Tuesday, September 29th. They issued a “sector outperform” rating and a $95.00 price target for the company. Mizuho set a $103.00 price objective on Southwest Gas in a research note on Wednesday, August 5th. Wells Fargo & Company increased their target price on Southwest Gas from $105.00 to $107.00 and gave the company an “overweight” rating in a research note on Friday, August 7th. Finally, Weiss Ratings cut shares of Southwest Gas from a “buy (b+)” rating to a “buy (b)” rating in a report on Monday, September 14th. Seven investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $101.25.

Insider Activity

In related news, SVP Julie Williams sold 2,500 shares of the firm’s stock in a transaction that occurred on Monday, September 28th. The shares were sold at an average price of $81.81, for a total transaction of $204,525.00. Following the transaction, the senior vice president owned 26,450 shares in the company, valued at $2,163,874.50. This trade represents a 8.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.63% of the stock is owned by company insiders.

Southwest Gas Company Profile

Southwest Gas Corporation (NYSE: SWX) is a regulated natural gas distribution utility serving residential, commercial and industrial customers. The company purchases, transports and delivers natural gas through its distribution networks, while also providing services related to system operations, maintenance, customer support and energy conservation.

Southwest Gas serves communities in Arizona, Nevada and portions of California. Its service territory includes major metropolitan areas such as Las Vegas and Phoenix, as well as numerous smaller communities across the southwestern United States.