Southwest Gas (NYSE:SWX) Announces Quarterly Earnings Results

Southwest Gas (NYSE:SWX) released its earnings results on Tuesday. The utilities provider reported $1.91 EPS for the quarter, topping the consensus estimate of $1.88 by $0.03, Briefing.com reports. The firm had revenue of $585.12 million during the quarter, compared to analysts’ expectations of $695.52 million. Southwest Gas had a net margin of 14.77% and a return on equity of 6.62%. Southwest Gas’s revenue for the quarter was down 21.6% on a year-over-year basis. During the same period in the previous year, the company earned $1.58 EPS. Southwest Gas updated its FY 2026 guidance to 4.170-4.320 EPS.

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

• Reported a solid start to 2026 with $1.91 EPS in Q1 and management affirmed 2026 Adjusted EPS guidance of $4.17–$4.32 and long‑term growth of 12%–14%.
• California general rate case remains pending but a draft decision approves the settlement (cost of capital deferred); a memorandum account preserves full‑year benefit back to Jan 1 and management does not expect a FY‑2026 earnings impact.
• Filed general rate cases requesting ~$172 million combined (Arizona $101M, Nevada $71M) and is pursuing a formula rate mechanism and capital trackers to reduce regulatory lag and improve earnings visibility.
• Great Basin 2028 expansion open season was massively oversubscribed (0.3 Bcf offered vs. 2.5 Bcf bids); project design currently targets ~1.0 Bcf at ~$1.7B with ongoing efforts to convert bids to binding precedent agreements, representing meaningful upside optionality.
• Balance sheet and liquidity remain strong (net debt ~$3.2B), management expects no equity issuance in 2026, and plans ~$1.25B of 2026 capex and <$strong>$6.3B over five years to support ~9.5%–11.5% rate base CAGR.

Southwest Gas Trading Down 2.2%

Shares of SWX traded down $2.06 during mid-day trading on Wednesday, reaching $91.61. The company had a trading volume of 309,191 shares, compared to its average volume of 606,539. The stock has a market cap of $6.63 billion, a price-to-earnings ratio of 13.97, a price-to-earnings-growth ratio of 2.38 and a beta of 0.62. The firm has a fifty day simple moving average of $88.85 and a 200-day simple moving average of $84.28. Southwest Gas has a fifty-two week low of $66.93 and a fifty-two week high of $94.43. The company has a current ratio of 1.28, a quick ratio of 1.18 and a debt-to-equity ratio of 0.87.

Southwest Gas Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Friday, May 15th will be issued a $0.645 dividend. This is a boost from Southwest Gas’s previous quarterly dividend of $0.62. The ex-dividend date is Friday, May 15th. This represents a $2.58 dividend on an annualized basis and a dividend yield of 2.8%. Southwest Gas’s dividend payout ratio (DPR) is 37.75%.

Hedge Funds Weigh In On Southwest Gas

Hedge funds have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC boosted its holdings in shares of Southwest Gas by 223.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 440 shares of the utilities provider’s stock valued at $33,000 after purchasing an additional 304 shares during the last quarter. Daiwa Securities Group Inc. lifted its holdings in shares of Southwest Gas by 21.3% during the 2nd quarter. Daiwa Securities Group Inc. now owns 939 shares of the utilities provider’s stock valued at $70,000 after acquiring an additional 165 shares in the last quarter. Advisory Services Network LLC acquired a new position in shares of Southwest Gas during the 3rd quarter valued at $72,000. Danske Bank A S acquired a new position in shares of Southwest Gas during the 3rd quarter valued at $94,000. Finally, Kestra Advisory Services LLC acquired a new position in shares of Southwest Gas during the 4th quarter valued at $99,000. Institutional investors and hedge funds own 92.77% of the company’s stock.

Key Stories Impacting Southwest Gas

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

• Positive Sentiment: Q1 EPS beat consensus — the company reported $1.91 EPS vs. $1.88 expected and operating income improved, supporting near‑term earnings resilience. Southwest Gas (SWX) Tops Q1 Earnings Estimates
• Positive Sentiment: Regulatory filings could drive future rate recovery — SWX filed rate cases in Arizona and Nevada requesting ~$172M and cited a twelve‑month utility ROE of 8.5%, which could increase regulated revenue if approved. PR Newswire: Q1 Financial Results & Rate Cases
• Positive Sentiment: Growth pipeline: management highlighted strong shipper interest supporting potential phased growth beyond the Great Basin 2028 expansion, a constructive sign for longer‑term volume and earnings. PR Newswire: Growth Commentary
• Neutral Sentiment: Full‑year EPS guidance affirmed at $4.170–$4.320 (consensus ~4.26) — guidance is largely unchanged, leaving FY outlook intact but with a slight miss vs. consensus midpoint. PR Newswire: Guidance Affirmed
• Neutral Sentiment: Investors can review management commentary and details on the call/slide deck for regulatory timing and capex cadence that will drive near‑term volatility. Earnings Call Transcript
• Negative Sentiment: Revenue and throughput hit — Q1 revenue was $585.1M vs. consensus ~$695.5M and total system throughput declined ~year‑over‑year, signaling near‑term demand/regulatory timing pressure on top line. Zacks: Revenues Decline Y/Y
• Negative Sentiment: California rate‑case delay weighed on Q1 results and adds regulatory uncertainty — management said timing of the California decision temporarily depressed Q1 results, which is the primary near‑term risk. Investing.com: California Case Delays

Wall Street Analysts Forecast Growth

Several analysts have commented on SWX shares. Citigroup raised shares of Southwest Gas from a “neutral” rating to a “buy” rating and lifted their target price for the stock from $82.00 to $99.00 in a research note on Thursday, January 15th. Mizuho set a $96.00 target price on shares of Southwest Gas in a research note on Wednesday, February 11th. Finally, Wall Street Zen cut shares of Southwest Gas from a “hold” rating to a “sell” rating in a research note on Saturday, April 18th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $88.40.

Southwest Gas Company Profile

Southwest Gas Corporation (NYSE: SWX) is a publicly traded natural gas utility that provides regulated gas distribution services to residential, commercial, industrial and electric generation customers. The company’s core activities include the transportation, distribution and sale of natural gas through an extensive network of pipelines, service lines and metering facilities. Southwest Gas also offers related services such as system maintenance, pipeline safety inspections, emergency response and line extensions to support customer growth and ensure reliable gas delivery.

Founded in 1931 in southern Nevada, Southwest Gas has grown through strategic acquisitions and organic expansion to become one of the nation’s larger natural gas utilities by customer count.