Southwest Gas (NYSE:SWX) Announces Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Southwest Gas (NYSE:SWX) issued its quarterly earnings results on Wednesday. The utilities provider reported $0.20 EPS for the quarter, beating analysts’ consensus estimates of $0.14 by $0.06, Zacks reports. Southwest Gas had a net margin of 17.23% and a return on equity of 6.98%. The business had revenue of $298.18 million for the quarter, compared to analysts’ expectations of $346.50 million. During the same quarter in the prior year, the firm posted $3.74 earnings per share. The business’s quarterly revenue was down 5.9% compared to the same quarter last year.

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 Up 0.7%

SWX traded up $0.60 during midday trading on Friday, hitting $91.09. The company had a trading volume of 295,123 shares, compared to its average volume of 597,906. Southwest Gas has a 52 week low of $78.37 and a 52 week high of $94.46. The company has a quick ratio of 0.99, a current ratio of 0.89 and a debt-to-equity ratio of 0.85. The company has a market capitalization of $6.60 billion, a price-to-earnings ratio of 22.22, a PEG ratio of 1.94 and a beta of 0.55. The stock’s 50 day moving average price is $87.07 and its 200 day moving average price is $88.31.

Southwest Gas Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Monday, November 16th will be issued a $0.6450 dividend. This represents a $2.58 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Monday, November 16th. Southwest Gas’s dividend payout ratio (DPR) is presently 62.93%.

Insider Buying and Selling at Southwest Gas

In other news, SVP Julie Williams sold 2,500 shares of the stock in a transaction dated 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 of the company’s stock, valued at $2,163,874.50. This represents a 8.64% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 0.63% of the company’s stock.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the company. Wolfe Research raised Southwest Gas from a “hold” rating to a “strong-buy” rating in a research report on Thursday. Wells Fargo & Company upped their target price on Southwest Gas from $105.00 to $107.00 and gave the company an “overweight” rating in a research report on Friday, August 7th. Weiss Ratings cut Southwest Gas from a “buy (b+)” rating to a “buy (b)” rating in a research note on Monday, September 14th. JPMorgan Chase & Co. decreased their target price on Southwest Gas from $102.00 to $101.00 and set an “overweight” rating for the company in a research note on Tuesday, October 20th. Finally, Jefferies Financial Group reiterated a “buy” rating and issued a $106.00 target price on shares of Southwest Gas in a report on Monday, October 5th. One equities research analyst has rated the stock with a Strong Buy rating and seven have issued a Buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and an average price target of $101.25.

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.