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

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Southwest Gas Holdings Inc. (SWX - Free Report) recorded first-quarter 2024 operating earnings of $1.37 per share, which missed the Zacks Consensus Estimate of $1.70 by 19.4%. The bottom line also decreased 22.6% from the year-ago quarter’s figure of $1.77.

Total Revenues

Operating revenues totaled $1.581 billion in the quarter, which surpassed the Zacks Consensus Estimate of $1.578 billion by 0.2%. However, the top line decreased 1.4% from $1.603 billion 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

Utility infrastructure services expenses were $515.6 million, down 14.6% from the year-ago quarter’s level of $603.7 million.

The total operating loss was $21.9 million against the income of $11.7 million in the year-ago quarter.

Total system throughput in the first quarter was 76.8 million dekatherms, down 13.1% year over year.

On Apr 22, 2024, Southwest Gas announced the closing of Centuri's initial public offering (IPO) of 14,260,000 shares of Centuri's common stock, including shares issued as part of the full exercise of the underwriters' over-allotment option, at an IPO price of $21 per share.

Financial Highlights

Cash and cash equivalents, as of Mar 31, 2024, were $457.9 million compared with $106.5 million as of Dec 31, 2023.

The long-term debt, less current maturities, amounted to $4.65 billion as of Mar 31, 2024 compared with $4.61 billion as of Dec 31, 2023.

Southwest Gas’ net cash provided by operating activities in the first three months of 2024 was $543.7 million against cash used of $185.7 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%.

Zacks Rank

Southwest Gas currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases

UGI Corporation (UGI - Free Report) reported fiscal second-quarter 2024 operating earnings of $1.97 per share, which surpassed the Zacks Consensus Estimate of $1.65 by 19.4%.

The Zacks Consensus Estimate for fiscal 2024 EPS is pegged at $2.91, which calls for a year-over-year increase of 2.5%. It delivered an average earnings surprise of 19.1% in the last four quarters.

MDU Resources Group Inc. (MDU - Free Report) reported first-quarter 2024 operating EPS of 52 cents, which increased 20.9% from the year-ago quarter’s 43 cents.

MDU’s long-term (three to five years) earnings growth rate is 6%. The consensus estimate for 2024 EPS is pegged at $1.55, which implies a year-over-year increase of 3.3%.

National Fuel Gas Company (NFG - Free Report) reported fiscal second-quarter 2024 adjusted operating earnings of $1.79 per share, which surpassed the Zacks Consensus Estimate of $1.41 by 26.9%.

The Zacks Consensus Estimate for fiscal 2024 EPS is pegged at $4.56, which indicates a year-over-year decrease of 11.8%. It delivered an average earnings surprise of 10.9% in the last four quarters.

 

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