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Southwest Gas (SWX) Q4 Earnings and Revenues Beat Estimates
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Southwest Gas Holdings Inc. (SWX - Free Report) recorded fourth-quarter 2023 operating earnings of $1.13 per share, which beat the Zacks Consensus Estimate of 97 cents by 16.5%. The bottom line increased 2.5% from the year-ago quarter’s figure of $1.16.
SWX reported earnings of $3.36 for 2023 compared with $3 per share in 2022, which reflects a year-over-year increase of 12%.
Total Revenues
Operating revenues totaled $1.3 billion in the quarter, which surpassed the Zacks Consensus Estimate of $1.2 million by 8.3%. However, the top line decreased 7.1% from $1.4 billion in the prior-year quarter.
SWX reported total revenues of $5.4 billion for 2023 compared with $4.9 billion in 2022, which reflects a year-over-year increase of 10.2%.
Southwest Gas Corporation Price, Consensus and EPS Surprise
Utility infrastructure service expenses were $612.3 million, down 12.4% from the year-ago quarter’s level of $699.7 million.
Total operating income was $18.5 million, down 43.9% from the year-ago quarter’s level of $33 million.
The company continues to gain from strong customer additions. Total system throughput in 2023 was 226.5 million dekatherms, up 1.8% compared to 2022.
Financial Highlights
Cash and cash equivalents, as of Dec 31, 2023, were $106.5 million compared with $123 million as of Dec 31, 2022.
The long-term debt, less current maturities, amounted to $4.6 billion as of Dec 31, 2023 compared with $4.4 billion as of Dec 31, 2022.
Southwest Gas’ net cash provided by operating activities for the year ended Dec 31, 2023 was $509.2 million compared with $407.4 million in the year-ago period.
2024 Guidance
Southwest Gas’ guidance for the Natural Gas Distribution segment’s net income in 2024 is in the range of $228-$238 million. The 2024 capital expenditure is expected to be $830 million to support customer growth, system improvements and pipe replacement programs.
Capital expenditure is expected to be $2.4 billion for 2024-2026. The utility rate base is projected to witness a CAGR in the range of 6.5-7.5%. The company anticipates customer growth of more than 1.6% annually in the 2024-2026 period.
UGI Corporation (UGI - Free Report) reported first-quarter fiscal 2024 operating earnings per share (EPS) of $1.20, which beat the Zacks Consensus Estimate of $1.12 by 7.1%.
UGI’s long-term (three to five years) earnings growth rate is 8%. The consensus estimate for fiscal 2024 EPS is pegged at $2.86, calling for a year-over-year increase of 0.70%.
Sempra Energy (SRE - Free Report) reported a fourth-quarter 2023 adjusted EPS of $1.13, which is in line with the Zacks Consensus Estimate.
SRE’s long-term earnings growth rate is 4.95%. The consensus estimate for 2024 EPS is pegged at $4.84, implying a year-over-year increase of 4.99%.
NorthWest Natural (NWN - Free Report) released fourth-quarter 2023 adjusted earnings of $1.21 per share, which beat the Zacks Consensus Estimate of $1.3 by 6.9%.
NWN’s long-term earnings growth rate is 3.7%. The consensus estimate for 2024 EPS is pegged at $2.52, suggesting a year-over-year decline of 2.70%.
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Southwest Gas (SWX) Q4 Earnings and Revenues Beat Estimates
Southwest Gas Holdings Inc. (SWX - Free Report) recorded fourth-quarter 2023 operating earnings of $1.13 per share, which beat the Zacks Consensus Estimate of 97 cents by 16.5%. The bottom line increased 2.5% from the year-ago quarter’s figure of $1.16.
SWX reported earnings of $3.36 for 2023 compared with $3 per share in 2022, which reflects a year-over-year increase of 12%.
Total Revenues
Operating revenues totaled $1.3 billion in the quarter, which surpassed the Zacks Consensus Estimate of $1.2 million by 8.3%. However, the top line decreased 7.1% from $1.4 billion in the prior-year quarter.
SWX reported total revenues of $5.4 billion for 2023 compared with $4.9 billion in 2022, which reflects a year-over-year increase of 10.2%.
Southwest Gas Corporation Price, Consensus and EPS Surprise
Southwest Gas Corporation price-consensus-eps-surprise-chart | Southwest Gas Corporation Quote
Highlights of the Release
Utility infrastructure service expenses were $612.3 million, down 12.4% from the year-ago quarter’s level of $699.7 million.
Total operating income was $18.5 million, down 43.9% from the year-ago quarter’s level of $33 million.
The company continues to gain from strong customer additions. Total system throughput in 2023 was 226.5 million dekatherms, up 1.8% compared to 2022.
Financial Highlights
Cash and cash equivalents, as of Dec 31, 2023, were $106.5 million compared with $123 million as of Dec 31, 2022.
The long-term debt, less current maturities, amounted to $4.6 billion as of Dec 31, 2023 compared with $4.4 billion as of Dec 31, 2022.
Southwest Gas’ net cash provided by operating activities for the year ended Dec 31, 2023 was $509.2 million compared with $407.4 million in the year-ago period.
2024 Guidance
Southwest Gas’ guidance for the Natural Gas Distribution segment’s net income in 2024 is in the range of $228-$238 million. The 2024 capital expenditure is expected to be $830 million to support customer growth, system improvements and pipe replacement programs.
Capital expenditure is expected to be $2.4 billion for 2024-2026. The utility rate base is projected to witness a CAGR in the range of 6.5-7.5%. The company anticipates customer growth of more than 1.6% annually in the 2024-2026 period.
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
UGI Corporation (UGI - Free Report) reported first-quarter fiscal 2024 operating earnings per share (EPS) of $1.20, which beat the Zacks Consensus Estimate of $1.12 by 7.1%.
UGI’s long-term (three to five years) earnings growth rate is 8%. The consensus estimate for fiscal 2024 EPS is pegged at $2.86, calling for a year-over-year increase of 0.70%.
Sempra Energy (SRE - Free Report) reported a fourth-quarter 2023 adjusted EPS of $1.13, which is in line with the Zacks Consensus Estimate.
SRE’s long-term earnings growth rate is 4.95%. The consensus estimate for 2024 EPS is pegged at $4.84, implying a year-over-year increase of 4.99%.
NorthWest Natural (NWN - Free Report) released fourth-quarter 2023 adjusted earnings of $1.21 per share, which beat the Zacks Consensus Estimate of $1.3 by 6.9%.
NWN’s long-term earnings growth rate is 3.7%. The consensus estimate for 2024 EPS is pegged at $2.52, suggesting a year-over-year decline of 2.70%.