Southwest Gas (NYSE:SWX) Announces Earnings Results

Southwest Gas (NYSE:SWX) posted its quarterly earnings results on Wednesday. The utilities provider reported $0.45 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.45, Briefing.com reports. Southwest Gas had a return on equity of 6.95% and a net margin of 19.95%.During the same period in the prior year, the company posted ($0.18) EPS. The business’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 Up 0.7%

SWX stock traded up $0.63 during trading hours on Wednesday, reaching $89.68. 431,242 shares of the stock were exchanged, compared to its average volume of 578,900. The company has a market cap of $6.49 billion, a price-to-earnings ratio of 12.99, a PEG ratio of 2.13 and a beta of 0.57. The firm’s 50-day moving average is $89.62 and its 200-day moving average is $88.40. Southwest Gas has a 12 month low of $75.75 and a 12 month high of $94.46. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.45 and a quick ratio of 1.32.

Southwest Gas Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Monday, August 17th will be issued a dividend of $0.645 per share. This represents a $2.58 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Monday, August 17th. Southwest Gas’s dividend payout ratio is 37.39%.

Analysts Set New Price Targets

A number of brokerages have issued reports on SWX. Mizuho raised their target price on Southwest Gas from $96.00 to $98.00 and gave the stock an “outperform” rating in a report on Tuesday, June 9th. Wells Fargo & Company began coverage on shares of Southwest Gas in a research note on Monday, May 11th. They set an “overweight” rating and a $105.00 price objective on the stock. UBS Group set a $100.00 price objective on shares of Southwest Gas in a report on Thursday, May 7th. Wall Street Zen raised shares of Southwest Gas from a “sell” rating to a “hold” rating in a research note on Sunday, July 12th. Finally, Weiss Ratings reissued a “buy (a-)” rating on shares of Southwest Gas in a research report on Monday. Two analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, Southwest Gas has an average rating of “Buy” and an average price target of $97.29.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Holocene Advisors LP lifted its stake in Southwest Gas by 40.8% in the 2nd quarter. Holocene Advisors LP now owns 4,747 shares of the utilities provider’s stock valued at $353,000 after acquiring an additional 1,375 shares in the last quarter. Cibc World Markets Corp bought a new position in shares of Southwest Gas during the 4th quarter worth approximately $343,000. Captrust Financial Advisors grew its stake in shares of Southwest Gas by 42.0% during the 2nd quarter. Captrust Financial Advisors now owns 4,509 shares of the utilities provider’s stock worth $335,000 after acquiring an additional 1,334 shares in the last quarter. CIBC Private Wealth Group LLC raised its holdings in shares of Southwest Gas by 71.7% in the fourth quarter. CIBC Private Wealth Group LLC now owns 4,100 shares of the utilities provider’s stock valued at $328,000 after purchasing an additional 1,712 shares during the last quarter. Finally, Zacks Investment Management acquired a new stake in shares of Southwest Gas in the fourth quarter valued at approximately $298,000. 92.77% of the stock is currently owned by institutional investors.

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.