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Southwest Gas' (SWX) Q3 Earnings Miss Mark, Revenues Rise Y/Y

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Southwest Gas (SWX - Free Report) reported third-quarter 2021 adjusted earnings of 5 cents per share, which missed the Zacks Consensus Estimate of 17 cents by 70.6%. The same declined 84.4% from the year-ago level of 32 cents.

Total Revenues

Total revenues came in at $888.7 million, surpassing the Zacks Consensus Estimate by 9%. The same improved 12.3% from $791.2 million in the year-ago quarter.

Southwest Gas Corporation Price, Consensus and EPS Surprise Southwest Gas Corporation Price, Consensus and EPS Surprise

Southwest Gas Corporation price-consensus-eps-surprise-chart | Southwest Gas Corporation Quote

Highlights of the Release

For the quarter under review, operating expenses of $865.4 million increased 17.4% from the prior-year period’s $737 million.

Operating income was $23.3 million, down 57.1% year over year.

In August, it completed the Riggs Distler acquisition, which is expected to generate $600 million extra revenues through 2024.

Financial Highlights

Cash and cash equivalents as of Sep 30, 2021 were $186.7 million compared with $83.4 million at 2020 end.

Long-term debt, less current maturities, amounted to $3,573.8 million as of Sep 30, 2021 compared with $2,732.2 million on Dec 31, 2020.

The company’s net cash provided by operating activities in the first three quarters of 2021 was $51.5 million compared with $487.8 million in the comparable period of 2020.

Guidance

Earnings per share are expected in the range of $4-$4.10. Questar Pipelines and Riggs Distler acquisitions will likely be accretive to earnings in 2022.

It plans to invest $650-$675 million during the ongoing year in the Natural Gas Operations segment. It aims to spend $2.1billion during the 2021-2023 forecast period.

Zacks Rank

It carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

ONEOK Inc (OKE - Free Report) posted third-quarter 2021 operating earnings of 88 cents per share, surpassing the Zacks Consensus Estimate of 83 cents by 6%

ONE Gas Inc. (OGS - Free Report) reported third-quarter 2021 earnings of 38 cents per share, on par with the Zacks Consensus Estimate.

MDU Resources Group Inc. (MDU - Free Report) reported third-quarter 2021 operating earnings of 68 cents per share, which missed the Zacks Consensus Estimate of 79 cents by 13.9%.