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Southwest Gas (SWX) Q2 Earnings Lag Estimates, Revenues Down Y/Y
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Southwest Gas Holdings Inc. (SWX - Free Report) recorded second-quarter 2024 operating earnings of 31 cents per share, which missed the Zacks Consensus Estimate of 43 cents by 27.9%. The bottom line also decreased 34% from the year-ago quarter’s figure of 47 cents.
Total Revenues
Operating revenues totaled $1.18 billion, which missed the Zacks Consensus Estimate of $1.23 billion by 3.9%. The top line also decreased 8.7% from $1.29 billion in the prior-year quarter.
Highlights of the Release
Utility infrastructure service expenses totaled $604.5 million, down 15.5% from the year-ago quarter’s level of $715.7 million.
The total operating income amounted to $33.1 million compared with $53.2 million in the year-ago quarter.
Total system throughput in the first six months of 2024 was 123.53 million dekatherms, down 8.3% from 134.77 million dekatherms in the first six months of 2023.
In April 2024, SWX completed the initial public offering (IPO) of Centuri Holdings, Inc. common stock at $21 per share, along with a concurrent private placement of Centuri's common stock at a price per share equal to the IPO price. The final net proceeds of nearly $328 million were primarily utilized to repay amounts under Centuri's term loan and revolving credit facility with the remainder for general corporate purposes.
Southwest Gas Corporation Price, Consensus and EPS Surprise
Cash and cash equivalents, as of Jun 30, 2024, were $599.6 million compared with $106.5 million as of Dec 31, 2023.
The long-term debt, less current maturities, amounted to $5.06 billion as of Jun 30, compared with $4.61 billion as of Dec 31, 2023.
Southwest Gas’ net cash provided by operating activities in the first six months of 2024 was $850.3 million compared with $12.2 million in the year-ago period.
2024 Guidance
Southwest Gas anticipates the Natural Gas Distribution segment’s net income in 2024 to be in the range of $233-$243 million. The capital expenditure is expected to be $830 million for supporting 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 of 6.5-7.5%.
Zacks Rank
Southwest Gas currently carries a Zacks Rank #5 (Strong Sell).
Spire Inc. (SR - Free Report) reported third-quarter fiscal 2024 loss of 14 cents per share, which beat the Zacks Consensus Estimate of a loss of 18 cents by 0.4%.
SR’s long-term (three to five years) earnings growth rate is 5%. The consensus estimate for fiscal 2024 earnings per share (EPS) is pegged at $4.28, implying an improvement of 5.7% from the year-earlier level.
National Fuel Gas Company (NFG - Free Report) reported fiscal third-quarter EPS of 99 cents, which beat the Zacks Consensus Estimate of 92 cents by 7.6%. The company’s bottom line decreased 2% from $1.01 in the prior-year quarter.
The consensus estimate for NFG’s 2024 EPS is pegged at $5.11, which implies a decrease of 1.2% from the year-earlier level.
ONE Gas, Inc. (OGS - Free Report) reported second-quarter EPS of 48 cents, which missed the Zacks Consensus Estimate of 49 cents by 2%. The company’s bottom line decreased 17.2% from 58 cents in the prior-year quarter.
The consensus estimate for OGS’ 2024 EPS is pegged at $3.85, implying a decrease of 7% from the year-earlier level.
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Southwest Gas (SWX) Q2 Earnings Lag Estimates, Revenues Down Y/Y
Southwest Gas Holdings Inc. (SWX - Free Report) recorded second-quarter 2024 operating earnings of 31 cents per share, which missed the Zacks Consensus Estimate of 43 cents by 27.9%. The bottom line also decreased 34% from the year-ago quarter’s figure of 47 cents.
Total Revenues
Operating revenues totaled $1.18 billion, which missed the Zacks Consensus Estimate of $1.23 billion by 3.9%. The top line also decreased 8.7% from $1.29 billion in the prior-year quarter.
Highlights of the Release
Utility infrastructure service expenses totaled $604.5 million, down 15.5% from the year-ago quarter’s level of $715.7 million.
The total operating income amounted to $33.1 million compared with $53.2 million in the year-ago quarter.
Total system throughput in the first six months of 2024 was 123.53 million dekatherms, down 8.3% from 134.77 million dekatherms in the first six months of 2023.
In April 2024, SWX completed the initial public offering (IPO) of Centuri Holdings, Inc. common stock at $21 per share, along with a concurrent private placement of Centuri's common stock at a price per share equal to the IPO price. The final net proceeds of nearly $328 million were primarily utilized to repay amounts under Centuri's term loan and revolving credit facility with the remainder for general corporate purposes.
Southwest Gas Corporation Price, Consensus and EPS Surprise
Southwest Gas Corporation price-consensus-eps-surprise-chart | Southwest Gas Corporation Quote
Financial Highlights
Cash and cash equivalents, as of Jun 30, 2024, were $599.6 million compared with $106.5 million as of Dec 31, 2023.
The long-term debt, less current maturities, amounted to $5.06 billion as of Jun 30, compared with $4.61 billion as of Dec 31, 2023.
Southwest Gas’ net cash provided by operating activities in the first six months of 2024 was $850.3 million compared with $12.2 million in the year-ago period.
2024 Guidance
Southwest Gas anticipates the Natural Gas Distribution segment’s net income in 2024 to be in the range of $233-$243 million. The capital expenditure is expected to be $830 million for supporting 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 of 6.5-7.5%.
Zacks Rank
Southwest Gas currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
Spire Inc. (SR - Free Report) reported third-quarter fiscal 2024 loss of 14 cents per share, which beat the Zacks Consensus Estimate of a loss of 18 cents by 0.4%.
SR’s long-term (three to five years) earnings growth rate is 5%. The consensus estimate for fiscal 2024 earnings per share (EPS) is pegged at $4.28, implying an improvement of 5.7% from the year-earlier level.
National Fuel Gas Company (NFG - Free Report) reported fiscal third-quarter EPS of 99 cents, which beat the Zacks Consensus Estimate of 92 cents by 7.6%. The company’s bottom line decreased 2% from $1.01 in the prior-year quarter.
The consensus estimate for NFG’s 2024 EPS is pegged at $5.11, which implies a decrease of 1.2% from the year-earlier level.
ONE Gas, Inc. (OGS - Free Report) reported second-quarter EPS of 48 cents, which missed the Zacks Consensus Estimate of 49 cents by 2%. The company’s bottom line decreased 17.2% from 58 cents in the prior-year quarter.
The consensus estimate for OGS’ 2024 EPS is pegged at $3.85, implying a decrease of 7% from the year-earlier level.