Southwest Gas (NYSE:SWX) Releases Quarterly Earnings Results, Misses Estimates By $0.11 EPS

Southwest Gas (NYSE:SWX) released its quarterly earnings results on Tuesday. The utilities provider reported $1.91 earnings per share for the quarter, missing analysts’ consensus estimates of $2.02 by ($0.11), Briefing.com reports. Southwest Gas had a net margin of 14.77% and a return on equity of 6.62%. The firm’s revenue for the quarter was down 21.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.58 EPS. Southwest Gas updated its FY 2026 guidance to 4.170-4.320 EPS.

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

• Reported a solid start to 2026 with $1.91 EPS in Q1 and management affirmed 2026 Adjusted EPS guidance of $4.17–$4.32 and long‑term growth of 12%–14%.
• California general rate case remains pending but a draft decision approves the settlement (cost of capital deferred); a memorandum account preserves full‑year benefit back to Jan 1 and management does not expect a FY‑2026 earnings impact.
• Filed general rate cases requesting ~$172 million combined (Arizona $101M, Nevada $71M) and is pursuing a formula rate mechanism and capital trackers to reduce regulatory lag and improve earnings visibility.
• Great Basin 2028 expansion open season was massively oversubscribed (0.3 Bcf offered vs. 2.5 Bcf bids); project design currently targets ~1.0 Bcf at ~$1.7B with ongoing efforts to convert bids to binding precedent agreements, representing meaningful upside optionality.
• Balance sheet and liquidity remain strong (net debt ~$3.2B), management expects no equity issuance in 2026, and plans ~$1.25B of 2026 capex and <$strong>$6.3B over five years to support ~9.5%–11.5% rate base CAGR.

Southwest Gas Stock Up 0.8%

Shares of NYSE SWX traded up $0.76 during midday trading on Tuesday, reaching $93.83. The company’s stock had a trading volume of 160,902 shares, compared to its average volume of 605,027. The company has a current ratio of 1.28, a quick ratio of 1.18 and a debt-to-equity ratio of 0.87. Southwest Gas has a fifty-two week low of $66.93 and a fifty-two week high of $94.43. The stock has a market capitalization of $6.79 billion, a price-to-earnings ratio of 14.27, a PEG ratio of 2.38 and a beta of 0.62. The stock has a 50 day simple moving average of $88.72 and a 200-day simple moving average of $84.18.

Southwest Gas Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Stockholders of record on Friday, May 15th will be issued a $0.645 dividend. This represents a $2.58 dividend on an annualized basis and a dividend yield of 2.7%. This is a boost from Southwest Gas’s previous quarterly dividend of $0.62. The ex-dividend date is Friday, May 15th. Southwest Gas’s dividend payout ratio is 39.27%.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on SWX. Mizuho set a $96.00 target price on shares of Southwest Gas in a research note on Wednesday, February 11th. Citigroup raised shares of Southwest Gas from a “neutral” rating to a “buy” rating and upped their price target for the stock from $82.00 to $99.00 in a research note on Thursday, January 15th. Finally, Wall Street Zen lowered shares of Southwest Gas from a “hold” rating to a “sell” rating in a research note on Saturday, April 18th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $88.40.

Institutional Trading of Southwest Gas

A number of hedge funds and other institutional investors have recently made changes to their positions in SWX. EverSource Wealth Advisors LLC raised its holdings in shares of Southwest Gas by 223.5% in the second 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 during the last quarter. Daiwa Securities Group Inc. raised its holdings in shares of Southwest Gas by 21.3% in the second quarter. Daiwa Securities Group Inc. now owns 939 shares of the utilities provider’s stock valued at $70,000 after purchasing an additional 165 shares during the last quarter. Advisory Services Network LLC acquired a new stake in shares of Southwest Gas in the third quarter valued at approximately $72,000. Danske Bank A S acquired a new stake in shares of Southwest Gas in the third quarter valued at approximately $94,000. Finally, Kestra Advisory Services LLC acquired a new stake in shares of Southwest Gas in the fourth quarter valued at approximately $99,000. 92.77% of the stock is currently owned by institutional investors and hedge funds.

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.