Southwest Gas Q3 Earnings Surpass Estimates, Revenues Fall Y/Y

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]