Southwest Gas (NYSE:SWX) Issues Earnings Results

Southwest Gas (NYSE:SWX) issued its quarterly earnings data on Wednesday. The utilities provider reported $0.45 EPS for the quarter, hitting analysts’ consensus estimates of $0.45, Briefing.com reports. Southwest Gas had a return on equity of 6.85% and a net margin of 31.85%.The firm had revenue of $358.15 million during the quarter, compared to analyst estimates of $416.20 million. During the same period in the previous year, the company posted ($0.18) EPS. The company’s revenue for the quarter 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 Performance

Shares of SWX traded down $0.32 during trading hours on Friday, hitting $92.08. The company’s stock had a trading volume of 66,106 shares, compared to its average volume of 578,582. The company has a market cap of $6.66 billion, a price-to-earnings ratio of 12.02, a PEG ratio of 2.15 and a beta of 0.57. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.45 and a quick ratio of 1.32. The business has a 50 day simple moving average of $89.78 and a two-hundred day simple moving average of $88.48. Southwest Gas has a 52-week low of $75.75 and a 52-week high of $94.46.

Southwest Gas Announces Dividend

The company 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. This represents a $2.58 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend is Monday, August 17th. Southwest Gas’s dividend payout ratio is currently 37.39%.

Hedge Funds Weigh In On Southwest Gas

Hedge funds have recently made changes to their positions in the stock. Corient Private Wealth LLC grew its stake in Southwest Gas by 38.7% during the fourth quarter. Corient Private Wealth LLC now owns 5,273 shares of the utilities provider’s stock valued at $422,000 after acquiring an additional 1,472 shares in the last quarter. First Citizens Bank & Trust Co. grew its position in Southwest Gas by 2.1% during the fourth quarter. First Citizens Bank & Trust Co. now owns 10,934 shares of the utilities provider’s stock valued at $875,000 after acquiring an additional 224 shares during the last quarter. State of Tennessee Department of Treasury boosted its position in Southwest Gas by 33.5% during the fourth quarter. State of Tennessee Department of Treasury now owns 32,577 shares of the utilities provider’s stock valued at $2,698,000 after buying an additional 8,168 shares during the period. Empowered Funds LLC purchased a new stake in Southwest Gas during the 4th quarter valued at about $174,000. Finally, Zacks Investment Management bought a new position in shares of Southwest Gas in the fourth quarter worth approximately $298,000. 92.77% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on SWX. Weiss Ratings reiterated a “buy (a-)” rating on shares of Southwest Gas in a report on Monday. UBS Group set a $100.00 price objective on shares of Southwest Gas in a report on Thursday, May 7th. 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. Mizuho set a $103.00 price target on shares of Southwest Gas in a research report on Wednesday. Finally, Wells Fargo & Company boosted their price target on shares of Southwest Gas from $105.00 to $107.00 and gave the stock an “overweight” rating in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Buy” and an average target price of $98.29.

Southwest Gas Company Profile

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.