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Southwest Gas (SWX) Beats Q4 Earnings and Revenue Estimates
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Southwest Gas Corporation (SWX - Free Report) reported fourth-quarter 2017 adjusted earnings of $1.58 per share, which beat the Zacks Consensus Estimate of $1.50 by 5.3%.
Including a one-time tax benefit of 42 cents, the company reported GAAP earnings of $2 per share which reflected a year-over-year improvement of 46% from $1.37.
Total Revenues
Southwest Gas’ total revenues were $740.4 million, surpassing the Zacks Consensus Estimate of $706 million by 4.9%. Revenues increased 15.4% from $641.5 million in the prior-year quarter.
Southwest Gas Corporation Price, Consensus and EPS Surprise
In the quarter under review, total operating margin was $273.3 million, up 2.2% from $267.4 million in the year-ago quarter. The upside was primarily driven by a combined rate relief in the Arizona and California jurisdictions.
Net cost of gas sold during the quarter amounted to $93.2 million, up 27.6% from $73 million in the prior-year quarter.
In the fourth quarter, consolidated net income was $96.5 million, up 48% from $65.2 million than the year-ago quarter. Results of the segments improved due to the recently enacted tax reform.
Outlook
Natural Gas Segment:
In 2018, operating income is expected to be relatively flat.
Net interest deductions for 2018 are expected to increase $9-$11 million year-over-year due to higher outstanding debt associated with capital expenditures.
Capital expenditures in 2018 are expected to be $670 million.
Construction Services Segment:
Operating income is expected between 5% and 5.5% of revenues.
Revenues for 2018 are anticipated to increase 5-7% from 2017.
Net interest deductions for 2018 are expected in the range of $11-$12 million.
Peer Releases
South Jersey Industries, Inc. reported fourth-quarter 2017 adjusted earnings of 50 cents per share, beating the Zacks Consensus Estimate of 41 cents by 21.95%.
National Fuel Gas Company (NFG - Free Report) reported first-quarter fiscal 2018 adjusted earnings of $1.02 per share, beating the Zacks Consensus Estimate of 82 cents by 24.4%.
ONEOK (OKE - Free Report) reported fourth-quarter 2017 operating earnings of 52 cents per share, beating the Zacks Consensus Estimate of 51 cents by a penny.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Southwest Gas (SWX) Beats Q4 Earnings and Revenue Estimates
Southwest Gas Corporation (SWX - Free Report) reported fourth-quarter 2017 adjusted earnings of $1.58 per share, which beat the Zacks Consensus Estimate of $1.50 by 5.3%.
Including a one-time tax benefit of 42 cents, the company reported GAAP earnings of $2 per share which reflected a year-over-year improvement of 46% from $1.37.
Total Revenues
Southwest Gas’ total revenues were $740.4 million, surpassing the Zacks Consensus Estimate of $706 million by 4.9%. Revenues increased 15.4% from $641.5 million in the prior-year quarter.
Southwest Gas Corporation Price, Consensus and EPS Surprise
Southwest Gas Corporation Price, Consensus and EPS Surprise | Southwest Gas Corporation Quote
Quarterly Highlights
In the quarter under review, total operating margin was $273.3 million, up 2.2% from $267.4 million in the year-ago quarter. The upside was primarily driven by a combined rate relief in the Arizona and California jurisdictions.
Net cost of gas sold during the quarter amounted to $93.2 million, up 27.6% from $73 million in the prior-year quarter.
In the fourth quarter, consolidated net income was $96.5 million, up 48% from $65.2 million than the year-ago quarter. Results of the segments improved due to the recently enacted tax reform.
Outlook
Natural Gas Segment:
In 2018, operating income is expected to be relatively flat.
Net interest deductions for 2018 are expected to increase $9-$11 million year-over-year due to higher outstanding debt associated with capital expenditures.
Capital expenditures in 2018 are expected to be $670 million.
Construction Services Segment:
Operating income is expected between 5% and 5.5% of revenues.
Revenues for 2018 are anticipated to increase 5-7% from 2017.
Net interest deductions for 2018 are expected in the range of $11-$12 million.
Peer Releases
South Jersey Industries, Inc. reported fourth-quarter 2017 adjusted earnings of 50 cents per share, beating the Zacks Consensus Estimate of 41 cents by 21.95%.
National Fuel Gas Company (NFG - Free Report) reported first-quarter fiscal 2018 adjusted earnings of $1.02 per share, beating the Zacks Consensus Estimate of 82 cents by 24.4%.
ONEOK (OKE - Free Report) reported fourth-quarter 2017 operating earnings of 52 cents per share, beating the Zacks Consensus Estimate of 51 cents by a penny.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>