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Southwest Gas (SWX) Q1 Earnings Miss, Revenues Beat Estimates

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Southwest Gas Holding Inc. (SWX - Free Report) recorded first-quarter 2022 operating earnings per share (EPS) of $1.74, which missed the Zacks Consensus Estimate of $2.02 by 13.9%. The bottom line also decreased by 14.3% from the year-ago quarter’s tally of $2.03 per share.

Total Revenues

Operating revenues of $1,267.4 million surpassed the Zacks Consensus Estimate of $1,055 million by 20%. The top line improved 43.1% from $885.9 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 price-consensus-eps-surprise-chart | Southwest Gas Corporation Quote

Highlights of the Release

Total operating expenses in the first quarter amounted to $1,098.9 million, up 54.2% from the year-ago figure of $712.5 million, due to an increase in the net cost of gas sold, utility infrastructure services expenses and higher operations and maintenance expenses.

The operating income was $168.5 million, down 2.9% year over year.

Financial Highlights

Cash and cash equivalents as of Mar 31, 2022 were $624.7 million compared with $222.7 million as of Dec 31, 2021.

The long-term debt, less current maturities, amounted to $4,559.7 million as of Mar 31, 2022 compared with $4,115.7 million as of Dec 31, 2021.

Southwest Gas’ net cash provided by operating activities for the first three months of 2022 was $186.6 million compared with cash used in operating activities of $52.5 million in the year-ago period.

Guidance

SWX reaffirmed plans to invest the $650-$700 million range in the ongoing year in the Natural Gas Distribution segment. The segment expects a utility rate base CAGR of 5% to 7% for the 2022-2026 period.

Southwest Gas expects the five-year capital expenditure in the range of $2.5-$3.5 billion.

The Utility Infrastructure Services segment reaffirmed its 2022 revenue expectation in the range of $2.65-$2.8 billion.

Zacks Rank

Southwest Gas carries a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Algonquin Power & Utilities (AQN - Free Report) is set to release first-quarter 2022 results on May 12 after market close. The Zacks Consensus Estimate for EPS is pegged at 22 cents.

Algonquin Power & Utilities’ long-term (three to five years) earnings growth is projected at 8.1%. The Zacks Consensus Estimate for AQN’s 2022 EPS indicates year-over-year growth of 4.2%.

Pampa Energia S.A (PAM - Free Report) is set to release first-quarter 2022 results on May 12 after market close. The Zacks Consensus Estimate for EPS is pegged at $1.23.

Pampa Energia’s long-term earnings growth is projected at 33%. The Zacks Consensus Estimate for PAM’s 2023 EPS indicates year-over-year growth of 44.9%.

Consolidated Water (CWCO - Free Report) is set to release first-quarter 2022 results on May 13 before market open. The Zacks Consensus Estimate for EPS is pegged at 9 cents.

Consolidated Water’s long-term earnings growth is projected at 8%. The Zacks Consensus Estimate for CWCO’s 2022 EPS indicates year-over-year growth of 130.4%.