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Why Is Southwest Gas (SWX) Up 8.8% Since Last Earnings Report?
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It has been about a month since the last earnings report for Southwest Gas (SWX - Free Report) . Shares have added about 8.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Southwest Gas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Southwest Gas Q4 Earnings & Revenues Beat Estimates
Southwest Gas Holding Inc. recorded fourth-quarter 2021 operating earnings per share (EPS) of $1.61, which surpassed the Zacks Consensus Estimate of $1.56 by 3.2%. However, the bottom line dropped 12% from the year-ago quarter’s tally of $1.82 per share.
Southwest Gas reported operating EPS of $4.17 in 2021, up 0.7% from $4.14 in 2020. Total earnings surpassed the Zacks Consensus Estimate of $4.05 by 3%.
Total Revenues
Operating revenues of $1,084.4 million surpassed the Zacks Consensus Estimate of $1,048 million by 3.5%. The top line improved 18.6% from $914 million in the prior-year quarter.
Southwest Gas reported total revenues of $3,680.5 million in 2021, up 12% from $3,299 million in 2020. Total revenues surpassed the Zacks Consensus Estimate of $3,644million by 1%.
Highlights of the Release
Total operating expenses for 2021 amounted to $3,311 million, up 15% from the year-ago figure of $2,876 million, due to an increase in the net cost of gas sold, utility infrastructure services expenses, and higher operations and maintenance expenses.
Operating income was $369.5 million, down 12.6% year over year.
Financial Highlights
Cash and cash equivalents as of Dec 31, 2021 were $222.7 million compared with $83.4 million as of Dec 31, 2020.
Long-term debt, less current maturities, amounted to $4,115.7 million as of Dec 31, 2021 compared with $2,732.2 million as of Dec 31, 2020.
Southwest Gas’ net cash provided by operating activities for 2021 was $111.4 million compared with $626.1 million in 2020.
Guidance
Southwest Gas plans to invest the $650-$700 million range during the ongoing year in the Natural Gas Distribution segment. The segment expects the utility rate base compound annual growth rate of 7% for the 2022-2026 period.
Southwest Gas’ recent acquisition of MountainWest is expected to be accretive to earnings in 2022. MountainWest is expected to generate 2022 revenues in the range of $240-$245 million.
Southwest Gas announced a decision to separate Centuri within the next nine to 12 months. The separation is expected to unlock value for shareholders and reduce future financing needs by enhancing SWX’s focus on regulated natural gas operations.
The Utility Infrastructure Services segment’s 2022 revenues are expected in the range of $2.65 billion-$2.8 billion.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
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Why Is Southwest Gas (SWX) Up 8.8% Since Last Earnings Report?
It has been about a month since the last earnings report for Southwest Gas (SWX - Free Report) . Shares have added about 8.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Southwest Gas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Southwest Gas Q4 Earnings & Revenues Beat Estimates
Southwest Gas Holding Inc. recorded fourth-quarter 2021 operating earnings per share (EPS) of $1.61, which surpassed the Zacks Consensus Estimate of $1.56 by 3.2%. However, the bottom line dropped 12% from the year-ago quarter’s tally of $1.82 per share.
Southwest Gas reported operating EPS of $4.17 in 2021, up 0.7% from $4.14 in 2020. Total earnings surpassed the Zacks Consensus Estimate of $4.05 by 3%.
Total Revenues
Operating revenues of $1,084.4 million surpassed the Zacks Consensus Estimate of $1,048 million by 3.5%. The top line improved 18.6% from $914 million in the prior-year quarter.
Southwest Gas reported total revenues of $3,680.5 million in 2021, up 12% from $3,299 million in 2020. Total revenues surpassed the Zacks Consensus Estimate of $3,644million by 1%.
Highlights of the Release
Total operating expenses for 2021 amounted to $3,311 million, up 15% from the year-ago figure of $2,876 million, due to an increase in the net cost of gas sold, utility infrastructure services expenses, and higher operations and maintenance expenses.
Operating income was $369.5 million, down 12.6% year over year.
Financial Highlights
Cash and cash equivalents as of Dec 31, 2021 were $222.7 million compared with $83.4 million as of Dec 31, 2020.
Long-term debt, less current maturities, amounted to $4,115.7 million as of Dec 31, 2021 compared with $2,732.2 million as of Dec 31, 2020.
Southwest Gas’ net cash provided by operating activities for 2021 was $111.4 million compared with $626.1 million in 2020.
Guidance
Southwest Gas plans to invest the $650-$700 million range during the ongoing year in the Natural Gas Distribution segment. The segment expects the utility rate base compound annual growth rate of 7% for the 2022-2026 period.
Southwest Gas’ recent acquisition of MountainWest is expected to be accretive to earnings in 2022. MountainWest is expected to generate 2022 revenues in the range of $240-$245 million.
Southwest Gas announced a decision to separate Centuri within the next nine to 12 months. The separation is expected to unlock value for shareholders and reduce future financing needs by enhancing SWX’s focus on regulated natural gas operations.
The Utility Infrastructure Services segment’s 2022 revenues are expected in the range of $2.65 billion-$2.8 billion.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.