It has been about a month since the last earnings report for Southwest Gas (SWX). Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Southwest Gas due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Southwest Gas Corporation before we dive into how investors and analysts have reacted as of late.
Southwest Gas Q3 Earnings Miss Estimates, Revenues Decrease Y/Y
Southwest Gas Holdings Inc. recorded third-quarter 2025 operating earnings of 6 cents per share, which missed the Zacks Consensus Estimate of 9 cents by 33.3%. The bottom line also decreased from the year-ago quarter’s figure of 9 cents.
SWX’s Total Revenues
Operating revenues totaled $0.32 billion, which lagged the Zacks Consensus Estimate of $0.37 billion by 14.5%. The top line also declined 70.6% from $1.08 billion reported in the prior-year quarter.
Highlights of SWX’s Q3 Earnings Release
Operations and maintenance expenses totaled $134.8 million, up 3% from the year-ago quarter’s level of $130.9 million.
The total operating income amounted to $37 million, up 83.9% from $20.1 million in the year-ago quarter.
Total system throughput in the first nine months of 2025 was 159.81 million dekatherms, down 4.1% from 166.63 million dekatherms reported in the first nine months of 2024.
Southwest Gas’ Financial Highlights
Cash and cash equivalents, as of Sept. 30, 2025, were $778.6 million compared with $314.8 million as of Dec. 31, 2024.
The long-term debt, less current maturities, amounted to $3.51 billion as of Sept. 30, 2025 compared with $3.50 billion as of Dec. 31, 2024.
Southwest Gas’ net cash provided by operating activities in the first nine months of 2025 was $0.47 billion compared with $1.15 billion in the year-ago period.
SWX’s 2025 Guidance
Southwest Gas continues to anticipate the Natural Gas Distribution segment’s net income in 2025 in the range of $265-$275 million. The capital expenditure is expected to be $880 million for supporting customer growth, system improvements and pipe replacement programs.
Capital expenditures are expected to be $4.3 billion for 2025-2029.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Southwest Gas has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Southwest Gas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Southwest Gas Corporation (SWX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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