Core Insights - Southwest Gas Holdings Inc. (SWX) reported third-quarter 2024 operating earnings of 9 cents per share, exceeding the Zacks Consensus Estimate of 7 cents by 28.6%, but down 47.1% from 17 cents in the same quarter last year [1] - Total operating revenues were $1.08 billion, missing the Zacks Consensus Estimate of $1.13 billion by 4.8%, and decreased 7.7% from $1.17 billion in the prior-year quarter [2] Financial Performance - Utility infrastructure service expenses were $644.9 million, a decrease of 5.9% from $685.7 million in the year-ago quarter [3] - Total operating income was $41.9 million, down from $52.9 million in the year-ago quarter [3] - Cash and cash equivalents as of September 30, 2024, were $456.6 million, significantly up from $106.5 million as of December 31, 2023 [4] - Long-term debt, less current maturities, was $4.38 billion as of September 30, 2024, down from $4.61 billion as of December 31, 2023 [4] - Net cash provided by operating activities in the first nine months of 2024 was $1.15 billion, compared to $0.2 billion in the year-ago period [4] Future Outlook - Southwest Gas anticipates net income for the Natural Gas Distribution segment in 2024 to be between $233 million and $243 million [5] - Capital expenditure is expected to be $830 million for 2024, aimed at supporting customer growth, system improvements, and pipe replacement programs [5] - Projected capital expenditure for 2024-2026 is $2.4 billion, with a utility rate base expected to grow at a CAGR of 6.5-7.5% [5] Market Position - Southwest Gas currently holds a Zacks Rank 3 (Hold) [6]

Company Performance - Southwest Gas reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, but down from $0.10 per share a year ago, representing an earnings surprise of 28.57% [1] - The company posted revenues of $1.08 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 4.82%, compared to $1.17 billion in revenues a year ago [2] - Over the last four quarters, Southwest Gas has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Market Comparison - Southwest Gas shares have increased by approximately 16.2% since the beginning of the year, while the S&P 500 has gained 21.2% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $1.38 billion, and for the current fiscal year, it is $3.13 on revenues of $5.28 billion [7] - The Zacks Rank for Southwest Gas is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Utility - Gas Distribution industry is currently in the top 37% of over 250 Zacks industries, suggesting that companies in the top 50% of Zacks-ranked industries outperform those in the bottom 50% by more than 2 to 1 [8]

Customer Base and Operations - As of September 30, 2024, Southwest had 2,248,000 natural gas customers, with 1,205,000 in Arizona, 837,000 in Nevada, and 206,000 in California[75]. - There were approximately 41,000 first-time meter sets over the past 12 months, comparable to the previous year[78]. Financial Performance - The operating margin for the twelve months ended September 30, 2024, was $1.3 billion, with 53% earned in Arizona, 35% in Nevada, and 12% in California[75]. - Utility infrastructure services revenues for Q3 2024 were $720 million, reflecting a decrease of $54.8 million, or 7%, compared to Q3 2023[79]. - Operating income for utility infrastructure services in Q3 2024 was $41.9 million, a decrease of $11 million compared to Q3 2023[79]. - Regulated operations revenues for Q3 2024 were $359,131,000, a decrease of 9% from $394,603,000 in Q3 2023[80]. - For the first nine months of 2024, regulated operations revenues were $1,922,157,000, up from $1,797,348,000 in the same period of 2023[82]. - Operating margin for the nine-month period increased by $43 million, reaching $937,969,000, with significant contributions from customer growth and rate relief[82]. - Net income (loss) for the first nine months of 2024 was $(17.1) million, compared to $28.8 million in the same period of 2023, indicating a substantial decline in profitability[85]. Expenses and Costs - Operations and maintenance expense rose by $7.5 million, or 6%, totaling $129,736,000, primarily due to increased labor-related costs and higher insurance expenses[80]. - Net interest deductions increased by approximately $6.5 million, totaling $42,312,000, due to regulatory treatment associated with industrial development revenue bonds[81]. - Utility infrastructure services expenses decreased by $40.8 million, or 6%, driven by lower volumes of infrastructure services provided[84]. - Depreciation and amortization expense for the nine-month period increased by approximately $1.9 million, or 1%, due to a $710 million increase in average gas plant in service[82]. - Depreciation and amortization expense decreased by $9.1 million between the current and prior-year nine-month periods, attributed to fully depreciated small tools and more efficient asset utilization[85]. Cash Flow and Investments - The company finished Q3 2024 with over $450 million in cash and does not expect to issue equity in 2024[79]. - Cash flows from consolidated operating activities increased by $956 million in the first nine months of 2024 compared to the same period in 2023, primarily due to the collection of previously deferred purchased gas costs[97]. - Construction expenditures for the natural gas distribution segment were $644 million during the nine-month period ended September 30, 2024, with approximately 55% allocated to replacing existing pipeline facilities[99]. - Management estimates that natural gas segment construction expenditures will total approximately $2.4 billion over the three years ending December 31, 2026, with about $830 million expected in 2024[99]. Regulatory and Rate Cases - Southwest filed a 2024 Arizona rate case application proposing a revenue increase of approximately $126 million to reflect significant capital investments and align rates with current operations[87]. - In Nevada, Southwest's general rate case resulted in an approved annual revenue increase of $59 million, effective April 2024, with a return on common equity of 9.5%[89]. - Southwest proposed a statewide revenue increase of approximately $49 million in its California general rate case filed in September 2024, with a requested return on common equity of 11.35%[90]. - Great Basin Gas Transmission Company requested an overall annual revenue increase of approximately $16 million in its general rate case, with rates effective September 2024, subject to refund[92]. Debt and Financing - The company extended its $550 million term loan credit agreement, now maturing on July 31, 2025, with a 17.5 basis point reduction in the applicable spread[79]. - The company has a credit facility with a borrowing capacity of $300 million that expires in December 2026, with $113 million outstanding as of September 30, 2024[101]. - Centuri completed an IPO in April 2024, raising approximately $328 million, which was primarily used to repay outstanding amounts under its credit facilities[102]. Future Outlook and Risks - The company plans to continue requesting regulatory support for projects aimed at improving system flexibility and reliability, with significant replacement activities expected to continue beyond the next few years[99]. - Future operating cash flows and results of operations are forecasted to be influenced by regulatory rate proceedings and recovery of costs from gas infrastructure replacement programs[104]. - The company faces risks related to customer growth rates, housing market conditions, and inflation, which could materially affect financial results[105]. - Management's ability to finance and assimilate acquired businesses is crucial for future growth and operational efficiency[105].

Core Viewpoint - Southwest Gas Holdings, Inc. reported strong utility earnings with a 9% year-to-date earnings growth year-over-year, driven by regulatory priorities and disciplined business management efforts [2][4]. Financial Performance - The company reported third quarter 2024 consolidated net income of $0.3 million, or less than one cent per diluted share, compared to $3.2 million, or $0.04 per diluted share, in the third quarter of 2023 [1]. - Adjusted consolidated net income for the third quarter of 2024 was $6.8 million, or $0.09 per diluted share, down from $12.6 million, or $0.17 per diluted share, in the same period last year [1][25]. - The natural gas distribution segment recorded a net income of $0.6 million in Q3 2024, a significant improvement from a net loss of $3.3 million in Q3 2023 [10][12]. Operational Highlights - The utility achieved a twelve-month utility gross margin of $0.7 billion and a record utility operating margin of $1.3 billion [8]. - Approximately 41,000 new meter sets were added to the customer count over the last 12 months, representing a 1.9% increase [8]. - The company made a capital investment of $644 million year-to-date to enhance safety and reliability of the distribution infrastructure [8]. Regulatory Developments - Southwest Gas filed a rate case in California and is advancing its Arizona general rate case, reflecting significant investments made on behalf of customers [3][4]. - The company continues to see positive impacts from the recovery of investments in Nevada, enhancing safety and reliability for its growing customer base [3]. Segment Performance - The utility infrastructure services segment recorded a net income of $10 million and adjusted net income of $16 million in Q3 2024, compared to $18 million and $23.4 million in Q3 2023, respectively [15]. - Year-to-date 2024, the utility infrastructure services segment reported a net loss of $21.2 million, a decline from a net income of $24.9 million in the same period of 2023 [17]. Future Outlook - The company expects 2024 utility net income to finish within the top half of its guidance range of $233 million to $243 million [14]. - Capital expenditures for 2024 are projected to be approximately $830 million, supporting customer growth and system improvements [14].

Company to Host Earnings Conference Call on November 6, 2024LAS VEGAS, Oct. 23, 2024 /PRNewswire/ -- Southwest Gas Holdings, Inc. (NYSE: SWX) ("Southwest Gas" or the "Company") will hold its third quarter earnings conference call and webcast on November 6, 2024, at 11:00 AM ET, following its news release to be issued before the markets open that day.The conference call will be webcast live on the Company's website at www.swgasholdings.com.Date: Wednesday, November 6, 2024 Time: 11:00 AM ET Telephone number: ...

A month has gone by since the last earnings report for Southwest Gas (SWX) . Shares have added about 0.6% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Southwest Gas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Southwest Gas Q2 Earnings Lag Estimates, Revenu ...

Southwest Gas Holdings, Inc. (SWX) is a regulated utility company that provides natural gas services and operates a pipeline transmission system. Its strategic investments and diverse and growing customer base will further boost its performance. However, this Zacks Rank #3 (Hold) company faces risks related to the high dependence on interstate pipelines' transportation capacity. SWX's Tailwinds Southwest Gas plans to invest $2.4 billion during the 2024-2026 period to meet the growing demand for safe, reliab ...

Core Viewpoint - Southwest Gas Holdings Inc. (SWX) reported disappointing second-quarter 2024 results, with significant declines in both operating earnings and total revenues compared to the previous year and consensus estimates [1][2]. Financial Performance - Operating earnings for Q2 2024 were 31 cents per share, missing the Zacks Consensus Estimate of 43 cents by 27.9% and down 34% from 47 cents in the same quarter last year [1]. - Total operating revenues were $1.18 billion, falling short of the Zacks Consensus Estimate of $1.23 billion by 3.9% and decreasing 8.7% from $1.29 billion in the prior-year quarter [2]. Expense and Income Analysis - Utility infrastructure service expenses totaled $604.5 million, down 15.5% from $715.7 million in the year-ago quarter [3]. - Total operating income was $33.1 million, compared to $53.2 million in the same quarter last year [3]. Operational Metrics - Total system throughput for the first six months of 2024 was 123.53 million dekatherms, an 8.3% decrease from 134.77 million dekatherms in the first half of 2023 [3]. Capital and Debt Position - As of June 30, 2024, cash and cash equivalents were $599.6 million, a significant increase from $106.5 million as of December 31, 2023 [5]. - Long-term debt, less current maturities, rose to $5.06 billion as of June 30, 2024, compared to $4.61 billion at the end of 2023 [5]. Future Guidance - The company anticipates net income for the Natural Gas Distribution segment in 2024 to be between $233 million and $243 million, with capital expenditures expected to be $830 million for customer growth and system improvements [6]. - For the period of 2024-2026, capital expenditure is projected to be $2.4 billion, with a utility rate base CAGR of 6.5-7.5% [6]. Market Position - Southwest Gas currently holds a Zacks Rank of 5 (Strong Sell), indicating a negative outlook in the market [7].

Southwest Gas (SWX) came out with quarterly earnings of $0.31 per share, missing the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.47 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -27.91%. A quarter ago, it was expected that this natural gas company would post earnings of $1.70 per share when it actually produced earnings of $1.37, delivering a surprise of -19.41%. Over the last four quarters, ...

Delivers Second Quarter Utility Earnings Growth of 44.5% Margin Improvement From Nevada Rate Case Outcome Centuri IPO Successfully Executed; Net Proceeds Used to Reduce Centuri Debt LAS VEGAS, Aug. 6, 2024 /PRNewswire/ -- Southwest Gas Holdings, Inc. (NYSE: SWX) ("Southwest Gas" or "Company") today reported second quarter 2024 consolidated net income of $18.3 million, or $0.25 per diluted share, and adjusted consolidated net income of $22.5 million, or $0.31 per diluted share. These results compared to cons ...