Scotiabank Comments on Southwest Gas FY2026 Earnings

Key Points

• Scotiabank expects Southwest Gas to report FY2026 EPS of $4.29, slightly above the $4.26 consensus estimate, and projects FY2027 EPS of $4.96. The firm maintains a “Sector Outperform” rating and a $95 price target.
• Analyst sentiment remains broadly positive, with six Buy ratings and one Hold rating producing a consensus “Moderate Buy” rating and an average price target of $101.83.
• Southwest Gas reported quarterly EPS of $0.45, in line with expectations, though revenue fell 9.6% year over year to $358.15 million. The company reaffirmed FY2026 EPS guidance of $4.17–$4.32 and pays an annualized dividend of $2.58, yielding about 3.1%.

Southwest Gas Corporation (NYSE:SWX - Free Report) - Investment analysts at Scotiabank issued their FY2026 earnings per share estimates for Southwest Gas in a research note issued on Thursday, October 1st. Scotiabank analyst I. Rapp anticipates that the utilities provider will post earnings per share of $4.29 for the year. Scotiabank has a "Sector Outperform" rating and a $95.00 price target on the stock. The consensus estimate for Southwest Gas' current full-year earnings is $4.26 per share. Scotiabank also issued estimates for Southwest Gas' FY2027 earnings at $4.96 EPS.

Several other analysts have also commented on the stock. Wall Street Zen lowered shares of Southwest Gas from a "hold" rating to a "sell" rating in a research report on Sunday. Mizuho set a $103.00 price objective on shares of Southwest Gas in a research report on Wednesday, August 5th. Weiss Ratings lowered shares of Southwest Gas from a "buy (b+)" rating to a "buy (b)" rating in a research note on Monday, September 14th. Finally, Wells Fargo & Company raised their target price on Southwest Gas from $105.00 to $107.00 and gave the company an "overweight" rating in a research report on Friday, August 7th. Six investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $101.83.

Southwest Gas Price Performance

NYSE:SWX opened at $82.71 on Monday. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.12 and a quick ratio of 0.99. The company has a 50 day moving average price of $88.20 and a 200-day moving average price of $88.96. Southwest Gas has a 1-year low of $76.74 and a 1-year high of $94.46. The firm has a market cap of $5.99 billion, a price-to-earnings ratio of 10.80, a price-to-earnings-growth ratio of 1.74 and a beta of 0.57.

Southwest Gas (NYSE:SWX - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The utilities provider reported $0.45 EPS for the quarter, hitting the consensus estimate of $0.45. The business had revenue of $358.15 million for the quarter, compared to analyst estimates of $416.20 million. Southwest Gas had a return on equity of 6.79% and a net margin of 31.85%.The business's quarterly revenue was down 9.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.18) EPS. Southwest Gas has set its FY 2026 guidance at 4.170-4.320 EPS.

Institutional Trading of Southwest Gas

Several institutional investors have recently modified their holdings of SWX. BlackRock Inc. acquired a new position in shares of Southwest Gas during the 2nd quarter worth about $991,549,000. Maverick Capital Ltd. increased its stake in Southwest Gas by 3.9% during the 1st quarter. Maverick Capital Ltd. now owns 2,126,927 shares of the utilities provider's stock worth $184,830,000 after buying an additional 78,874 shares in the last quarter. Bank of New York Mellon Corp increased its stake in Southwest Gas by 11.4% during the 1st quarter. Bank of New York Mellon Corp now owns 846,251 shares of the utilities provider's stock worth $73,539,000 after buying an additional 86,456 shares in the last quarter. Norges Bank acquired a new position in shares of Southwest Gas during the fourth quarter valued at approximately $66,930,000. Finally, BROOKFIELD Corp ON raised its holdings in shares of Southwest Gas by 106.9% during the first quarter. BROOKFIELD Corp ON now owns 699,626 shares of the utilities provider's stock valued at $60,797,000 after acquiring an additional 361,556 shares during the last quarter. Institutional investors and hedge funds own 92.77% of the company's stock.

Insider Buying and Selling

In other Southwest Gas news, SVP Julie Williams sold 2,500 shares of the company's stock in a transaction on Monday, September 28th. The shares were sold at an average price of $81.81, for a total transaction of $204,525.00. Following the completion of the transaction, the senior vice president directly owned 26,450 shares in the company, valued at approximately $2,163,874.50. This represents a 8.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.63% of the company's stock.

Southwest Gas Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Monday, August 17th were paid a $0.6450 dividend. The ex-dividend date of this dividend was Monday, August 17th. This represents a $2.58 dividend on an annualized basis and a yield of 3.1%. Southwest Gas's dividend payout ratio (DPR) is currently 33.68%.

Southwest Gas Company Profile

Southwest Gas Holdings, Inc NYSE: SWX is an energy company whose principal business is the regulated distribution of natural gas through its Southwest Gas Corporation subsidiary. The utility delivers natural gas to residential, commercial, industrial and other customers, providing an essential energy service for heating, cooking and business operations.

Southwest Gas serves customers across portions of Arizona, Nevada and California through an extensive network of pipelines and related infrastructure.

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