Southwest Gas (NYSE:SWX) Announces Quarterly Earnings Results

by · The Markets Daily

Southwest Gas (NYSE:SWX – Get Free Report) issued its quarterly earnings results on Wednesday. The utilities provider reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.06, Zacks reports. The company had revenue of $298.18 million for the quarter, compared to the consensus estimate of $346.50 million. Southwest Gas had a return on equity of 6.79% and a net margin of 31.85%. Southwest Gas’s revenue was down 5.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $3.74 EPS.

Here are the key takeaways from Southwest Gas’ conference call:

  • Adjusted EPS from continuing operations rose to $0.20 in the third quarter from $0.06 a year earlier, while year-to-date EPS increased 18% to $2.69. Management reaffirmed 2026 guidance of $4.17–$4.32 per share and its 12%–14% long-term growth target.
  • Final California and Nevada rate decisions together authorize about $80 million in incremental annual revenue, with new rates effective in 2026. The company said these outcomes should support results as the full rate relief flows through.
  • Arizona remains a key regulatory uncertainty: staff recommended $53 million–$58 million in annual revenue, below Southwest Gas’s updated $91.3 million request, and the consumer advocate opposes the proposed formula-rate mechanism. Hearings are scheduled for December, with rates anticipated to take effect in April 2027.
  • Great Basin’s planned $2.3 billion expansion has binding shipper commitments for 1 Bcf per day, which management expects to support $270 million–$300 million of annual margin beginning with a targeted fourth-quarter 2028 in-service date. The FERC application is on track for year-end, though $600 million of the project estimate and associated margin are not included in current long-term guidance.

Southwest Gas Price Performance

NYSE:SWX traded down $0.29 during trading hours on Wednesday, reaching $92.84. 727,229 shares of the company traded hands, compared to its average volume of 596,303. The firm’s 50-day moving average is $87.02 and its 200-day moving average is $88.26. The stock has a market cap of $6.73 billion, a P/E ratio of 12.14, a P/E/G ratio of 1.97 and a beta of 0.55. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.12 and a quick ratio of 0.99. Southwest Gas has a 1-year low of $76.99 and a 1-year high of $94.46.

Southwest Gas Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Monday, November 16th will be paid a $0.6450 dividend. The ex-dividend date of this dividend is Monday, November 16th. This represents a $2.58 dividend on an annualized basis and a yield of 2.8%. Southwest Gas’s dividend payout ratio is presently 33.68%.

Insider Buying and Selling

In related news, SVP Julie Williams sold 2,500 shares of the business’s stock in a transaction dated Monday, September 28th. The shares were sold at an average price of $81.81, for a total value of $204,525.00. Following the completion of the transaction, the senior vice president owned 26,450 shares of the company’s stock, valued at approximately $2,163,874.50. The trade was a 8.64% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.63% of the company’s stock.

Trending Headlines about Southwest Gas

Here are the key news stories impacting Southwest Gas this week:

  • Positive Sentiment: Q3 earnings were $0.20 per share, above estimates of $0.14–$0.17 and up from $0.06 a year earlier, according to the reports. Southwest Gas Q3 Earnings Surpass Estimates
  • Positive Sentiment: The company reaffirmed its full-year 2026 guidance, reported an 8.0% trailing 12-month utility ROE, and said Nevada and California rate cases are complete. Q3 Results and Full-Year Guidance
  • Neutral Sentiment: Southwest Gas said its Great Basin 2028 expansion project remains on track for a certificate filing in the fourth quarter; the project is a longer-term development. Q3 Results and Full-Year Guidance
  • Negative Sentiment: Revenue was $298.18 million, below estimates of about $346.5 million and down 5.9% year over year. The revenue shortfall and lack of an increased outlook temper the earnings beat. Southwest Gas Q3 Profit Falls, Reiterates FY26 EPS Guidance

Wall Street Analyst Weigh In

Several analysts recently weighed in on SWX shares. Jefferies Financial Group reaffirmed a “buy” rating and issued a $106.00 target price on shares of Southwest Gas in a report on Monday, October 5th. Wall Street Zen downgraded Southwest Gas from a “hold” rating to a “sell” rating in a research note on Sunday, October 4th. JPMorgan Chase & Co. dropped their price target on shares of Southwest Gas from $102.00 to $101.00 and set an “overweight” rating on the stock in a research note on Tuesday, October 20th. Weiss Ratings downgraded Southwest Gas from a “buy (b+)” rating to a “buy (b)” rating in a report on Monday, September 14th. Finally, Wolfe Research initiated coverage on Southwest Gas in a report on Friday, October 9th. They issued a “peer perform” rating and a $92.00 price target on the stock. Seven research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, Southwest Gas has a consensus rating of “Moderate Buy” and an average price target of $101.25.

Get Our Latest Stock Analysis on SWX

About Southwest Gas

(Get Free Report)

Southwest Gas Corporation (NYSE: SWX) is a regulated natural gas distribution utility serving residential, commercial and industrial customers. The company purchases, transports and delivers natural gas through its distribution networks, while also providing services related to system operations, maintenance, customer support and energy conservation.

Southwest Gas serves communities in Arizona, Nevada and portions of California. Its service territory includes major metropolitan areas such as Las Vegas and Phoenix, as well as numerous smaller communities across the southwestern United States.

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