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Southwest Gas (SWX) Q3 Earnings & Revenues Beat Estimates
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Southwest Gas Holdings Inc. (SWX - Free Report) recorded third-quarter 2023 operating earnings of 10 cents per share, which beat the Zacks Consensus Estimate of 2 cents by 400%. The company reported a loss of 5 cents per share in the year-ago quarter.
GAAP earnings came in at 4 cents per share against a loss of 10 cents in the prior-year period.
Total Revenues
Operating revenues totaled $1,169.5 million in the quarter, which outpaced the Zacks Consensus Estimate of $1,064 million by 9.9%. The top line improved 3.9% from $1,125.6 million in the prior-year quarter.
Southwest Gas Corporation Price, Consensus and EPS Surprise
Total operating expenses were $1,109.3 million, up 3.1% from $1,075.7 million in the comparable period of 2022. This increase was due to a hike in the net cost of gas sold and utility infrastructure service expenses.
Total operating income was $60.2 million, up 20.4% from the year-ago quarter’s level of $50 million.
The company continues to gain from strong customer additions. Total system throughput in the first nine months of 2023 was 175.6 million dekatherms, up 6.7% from the year-ago quarter's level.
Financial Highlights
Cash and cash equivalents, as of Sep 30, 2023, were $104.9 million compared with $123.1 million as of Dec 31, 2022.
The long-term debt, less current maturities, amounted to $5,235.5 million as of Sep 30, 2023, compared with $4,403.3 million as of Dec 31, 2022.
Southwest Gas’ net cash provided by operating activities for the nine months ended Sep 30, 2023, was $198.4 million compared with $303.3 million in the year-ago period.
2023 Guidance
The capital expenditure guidance for the Natural Gas Distribution segment has been increased to $720-$740 million from the previously predicted band of $700-$720 million. This was primarily driven by greater-than-expected customer growth, as well as system improvements and pipe replacement programs to enhance safety and reliability. Guidance for the segment’s net income in 2023 was raised to $215-$225 million from the previously predicted band of $205-$215 million.
Capital expenditure is expected to be $2 billion for 2023-2025. Three-year rate base CAGR is projected to be in the range of 5-7%.
ONE Gas, Inc. (OGS - Free Report) reported third-quarter 2023 operating earnings per share (EPS) of 45 cents, which surpassed the Zacks Consensus Estimate of 42 cents by 7.1%.
OGS’ long-term (three to five years) earnings growth rate is 5%. The consensus estimate for 2023 EPS is pinned at $4.12.
Sempra Energy (SRE - Free Report) reported third-quarter 2023 adjusted EPS of $1.08, which beat the Zacks Consensus Estimate of $1.01 by 6.9%.
SRE’s long-term earnings growth rate is 4.95%. The consensus estimate for 2023 EPS is pegged at $4.52.
NorthWest Natural (NWN - Free Report) incurred a loss of 65 cents per share in the third quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 70 cents.
NWN’s long-term earnings growth rate is 3.7%. The consensus estimate for 2023 EPS is pegged at $2.68, implying a year-over-year improvement of 5.5%.
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Southwest Gas (SWX) Q3 Earnings & Revenues Beat Estimates
Southwest Gas Holdings Inc. (SWX - Free Report) recorded third-quarter 2023 operating earnings of 10 cents per share, which beat the Zacks Consensus Estimate of 2 cents by 400%. The company reported a loss of 5 cents per share in the year-ago quarter.
GAAP earnings came in at 4 cents per share against a loss of 10 cents in the prior-year period.
Total Revenues
Operating revenues totaled $1,169.5 million in the quarter, which outpaced the Zacks Consensus Estimate of $1,064 million by 9.9%. The top line improved 3.9% from $1,125.6 million in the prior-year quarter.
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 were $1,109.3 million, up 3.1% from $1,075.7 million in the comparable period of 2022. This increase was due to a hike in the net cost of gas sold and utility infrastructure service expenses.
Total operating income was $60.2 million, up 20.4% from the year-ago quarter’s level of $50 million.
The company continues to gain from strong customer additions. Total system throughput in the first nine months of 2023 was 175.6 million dekatherms, up 6.7% from the year-ago quarter's level.
Financial Highlights
Cash and cash equivalents, as of Sep 30, 2023, were $104.9 million compared with $123.1 million as of Dec 31, 2022.
The long-term debt, less current maturities, amounted to $5,235.5 million as of Sep 30, 2023, compared with $4,403.3 million as of Dec 31, 2022.
Southwest Gas’ net cash provided by operating activities for the nine months ended Sep 30, 2023, was $198.4 million compared with $303.3 million in the year-ago period.
2023 Guidance
The capital expenditure guidance for the Natural Gas Distribution segment has been increased to $720-$740 million from the previously predicted band of $700-$720 million. This was primarily driven by greater-than-expected customer growth, as well as system improvements and pipe replacement programs to enhance safety and reliability. Guidance for the segment’s net income in 2023 was raised to $215-$225 million from the previously predicted band of $205-$215 million.
Capital expenditure is expected to be $2 billion for 2023-2025. Three-year rate base CAGR is projected to be in the range of 5-7%.
Zacks Rank
Southwest Gas currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
ONE Gas, Inc. (OGS - Free Report) reported third-quarter 2023 operating earnings per share (EPS) of 45 cents, which surpassed the Zacks Consensus Estimate of 42 cents by 7.1%.
OGS’ long-term (three to five years) earnings growth rate is 5%. The consensus estimate for 2023 EPS is pinned at $4.12.
Sempra Energy (SRE - Free Report) reported third-quarter 2023 adjusted EPS of $1.08, which beat the Zacks Consensus Estimate of $1.01 by 6.9%.
SRE’s long-term earnings growth rate is 4.95%. The consensus estimate for 2023 EPS is pegged at $4.52.
NorthWest Natural (NWN - Free Report) incurred a loss of 65 cents per share in the third quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 70 cents.
NWN’s long-term earnings growth rate is 3.7%. The consensus estimate for 2023 EPS is pegged at $2.68, implying a year-over-year improvement of 5.5%.