Southwest Gas (NYSE:SWX) Releases Quarterly Earnings Results

Southwest Gas (NYSE:SWX) announced its earnings results on Wednesday. The utilities provider reported $0.20 earnings per share for the quarter, beating 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%. The company’s revenue was down 5.9% on a year-over-year basis. During the same period last year, the business posted $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 Stock Performance

SWX traded down $0.92 during trading on Wednesday, reaching $92.21. The company’s stock had a trading volume of 889,428 shares, compared to its average volume of 596,930. The company has a debt-to-equity ratio of 0.83, a quick ratio of 0.99 and a current ratio of 1.12. The company’s fifty day moving average price is $87.02 and its 200-day moving average price is $88.26. Southwest Gas has a 52-week low of $76.99 and a 52-week high of $94.46. The company has a market capitalization of $6.68 billion, a price-to-earnings ratio of 12.04, a price-to-earnings-growth ratio of 1.97 and a beta of 0.55.

Southwest Gas Announces Dividend

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

Key Southwest Gas News

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

Insider Activity

In other news, SVP Julie Williams sold 2,500 shares of the stock in a transaction that occurred on Monday, September 28th. The stock was 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 of the company’s stock, valued at approximately $2,163,874.50. This represents a 8.64% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.63% of the company’s stock.

Analyst Ratings Changes

SWX has been the subject of several recent research reports. Weiss Ratings downgraded Southwest Gas from a “buy (b+)” rating to a “buy (b)” rating in a report on Monday, September 14th. Scotiabank began coverage on shares of Southwest Gas in a research report on Tuesday, September 29th. They issued a “sector outperform” rating and a $95.00 price objective on the stock. Wells Fargo & Company boosted their price objective on shares of Southwest Gas from $105.00 to $107.00 and gave the company an “overweight” rating in a research note on Friday, August 7th. JPMorgan Chase & Co. dropped their price objective 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. Finally, Mizuho set a $103.00 price objective on shares of Southwest Gas in a research report on Wednesday, August 5th. Seven investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $101.25.

Southwest Gas Company Profile

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.