Southwest Gas (NYSE:SWX) Releases Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• Southwest Gas reported third-quarter EPS of $0.20, beating the $0.14 consensus by $0.06; adjusted EPS rose from $0.06 a year earlier. Management reaffirmed 2026 EPS guidance of $4.17–$4.32.
• Revenue was $298.18 million, below the $346.50 million forecast and down 5.9% year over year.
• Final California and Nevada rate decisions authorize about $80 million in additional annual revenue, while Arizona’s rate case remains uncertain, with staff recommendations below the company’s request.

Southwest Gas (NYSE:SWX - Get Free Report) posted its earnings results on Wednesday. The utilities provider reported $0.20 EPS for the quarter, beating analysts' consensus estimates of $0.14 by $0.06, Zacks reports. Southwest Gas had a return on equity of 6.79% and a net margin of 31.85%. The firm had revenue of $298.18 million for the quarter, compared to analysts' expectations of $346.50 million. During the same period last year, the firm earned $3.74 EPS. The company's quarterly revenue was down 5.9% on a year-over-year basis.

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 Trading Down 0.3%

Shares of SWX traded down $0.29 during midday trading on Wednesday, hitting $92.84. 727,229 shares of the stock were exchanged, compared to its average volume of 596,303. Southwest Gas has a 52-week low of $76.99 and a 52-week high of $94.46. The stock has a fifty day simple moving average of $87.02 and a 200 day simple moving average of $88.26. The firm 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 quick ratio of 0.99 and a current ratio of 1.12.

Southwest Gas Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Monday, November 16th will be paid a dividend of $0.6450 per share. This represents a $2.58 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Monday, November 16th. Southwest Gas's dividend payout ratio is 33.68%.

Insider Buying and Selling at Southwest Gas

In related news, SVP Julie Williams sold 2,500 shares of the business's stock in a transaction on Monday, September 28th. The stock was sold at an average price of $81.81, for a total value of $204,525.00. Following the sale, the senior vice president owned 26,450 shares in the company, valued at approximately $2,163,874.50. The trade was a 8.64% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.63% of the company's stock.

Key Stories Impacting 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

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on SWX. Jefferies Financial Group reaffirmed a "buy" rating and issued a $106.00 price target on shares of Southwest Gas in a report on Monday, October 5th. Weiss Ratings cut shares of Southwest Gas from a "buy (b+)" rating to a "buy (b)" rating in a research note on Monday, September 14th. Wells Fargo & Company boosted their price target on shares of Southwest Gas from $105.00 to $107.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Wolfe Research initiated coverage on shares of Southwest Gas in a report on Friday, October 9th. They set a "peer perform" rating and a $92.00 price objective on the stock. Finally, JPMorgan Chase & Co. decreased their price objective on Southwest Gas from $102.00 to $101.00 and set an "overweight" rating on the stock in a report on Tuesday, October 20th. Seven equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $101.25.

About Southwest Gas

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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