NYSE$SWX

Southwest Gas Holdings Inc. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Southwest Gas Holdings' first quarter earnings decreased compared to the same period last year, impacted by losses in company-owned life insurance policies and challenges within the utility infrastructure services segment due to COVID-19.

Southwest Gas Holdings reported consolidated earnings of $1.31 per diluted share for Q1 2020, a decrease from $1.77 per diluted share in Q1 2019. Net income was $72.5 million, down from $94.8 million year-over-year, influenced by losses in COLI policies and a net loss in the utility infrastructure services segment.

  • Consolidated earnings per diluted share decreased by $0.46 year-over-year, from $1.77 to $1.31.
  • Net income for the natural gas segment decreased from $103.4 million to $83.6 million.
  • The utility infrastructure services segment experienced a net loss of $10.2 million, compared to a loss of $8 million in the prior year.
  • 33,000 net new customers were added to the natural gas system.

Headline financials

Total Revenue

$836M

Previous: $834M+0.3%
EPS (adj)

$1.31

Previous: $1.77-26.0%
Capital Expenditures

-$211M

Previous: -$211M+0.0%
Free Cash Flow

-$138M

Previous: -$116M-19.2%
Net Income

$72.5M

Previous: $94.8M-23.5%
Operating Income

$148M

Previous: $140M+5.6%
Gross Profit

$517M

Previous: $533M-3.0%
Cash & Equivalents

$61M

Previous: $97M-37.2%
Total Assets

$8.09B

Previous: $7.57B+6.9%
Stock-Based Comp

$6.52M

Previous: $7.44M-12.3%

Revenue & EPS history

Southwest Gas · Revenue · Quarterly

$836M

Q1 2020+0.3%vs Q1 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Southwest Gas · $503M total across 1 segment · Q1 2020

  • Natural Gas Distribution
    $503M-3.4%

Forward guidance

Management affirms estimated 2020 diluted earnings per share between $3.75 and $4.00. Operations of both segments are subject to future impacts related to COVID-19.

Tailwinds

  • Operating margin for 2020 is anticipated to benefit from customer growth of 1.6%.
  • Operating margin for 2020 is anticipated to benefit from infrastructure tracker mechanisms.
  • Operating margin for 2020 is anticipated to benefit from expansion projects.
  • Operating margin for 2020 is anticipated to benefit from rate relief (including California attrition and anticipated partial-year results in Arizona and Nevada).
  • Operating income is expected to increase 3% to 5%.

Headwinds

  • Governmental policies enacted to suppress the spread of COVID-19 may impact future results of the Company.
  • The timing of processing utility general rate case applications may impact future results of the Company.
  • Utility customer growth rates may impact future results of the Company.
  • Operations and maintenance expense changes (including management cost cutting initiatives and the potential for higher bad debt expense) may impact future results of the Company.
  • Timing of the release of Centuri project orders from its utility customers may impact future results of the Company.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.2%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.5%

Avg return

30 days after

51%

32 / 63 earnings

Positive

+9.0%

Q4 2023

Best reaction

-7.8%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-1.4%+0.6%-1.5%
Q3 2025-4.1%-3.8%-4.0%
Q1 2025-7.8%-8.8%-5.2%
Q4 2024-2.5%-1.9%-5.6%
Q3 2024-0.3%+4.7%+2.7%
Q2 2024-1.0%+0.0%-1.9%
Q1 2024+0.9%-0.6%-2.9%
Q4 2023+9.0%+12.2%+21.7%
Q3 2023-1.8%-1.0%+2.9%
Q2 2023+3.1%+1.7%-4.6%
Q1 2023+1.9%+0.3%+11.2%
Q4 2022-6.6%-5.6%-2.3%
Q3 2022-2.9%-6.0%+4.8%
Q2 2022-2.5%-0.3%+6.2%
Q1 2022+2.5%+4.0%+5.2%
Q4 2021+2.3%+3.8%+10.4%
Q3 2021+2.7%+1.0%-0.5%
Q2 2021+0.2%-1.8%-0.5%
Q1 2021+1.5%+2.0%-4.1%
Q4 2020-4.1%-2.5%+3.5%
Q3 2020+0.1%+11.1%-3.2%
Q2 2020+5.7%+5.5%-7.6%
Q1 2020+7.5%+2.4%+6.6%
Q4 2019-6.4%-7.2%-6.5%
Q3 2019-6.1%-10.4%-11.5%
Q2 2019+1.3%+1.7%+3.8%
Q1 2019-2.3%+0.3%+5.3%
Q4 2018+0.8%+4.3%+1.2%
Q3 2018+3.3%+4.6%+1.6%
Q2 2018-0.0%+0.5%+2.7%
Q1 2018-1.9%-2.0%-1.3%
Q4 2017-4.4%-6.9%-1.8%
Q3 2017+4.1%+0.2%+3.4%
Q2 2017+2.0%+1.0%-1.2%
Q1 2017-4.3%-5.4%-7.9%
Q4 2016+0.3%+1.1%-2.0%
Q3 2016+3.8%+1.6%+6.1%
Q2 2016-2.0%-3.8%-4.5%
Q1 2016+1.7%
Q4 2015+3.2%
Q3 2015-4.5%
Q2 2015-2.5%
Q1 2015-4.6%
Q4 2014-0.7%
Q3 2014-1.1%
Q2 2014-0.1%
Q1 2014+1.3%
Q4 2013-1.8%
Q3 2013+0.5%
Q2 2013-0.7%
Q1 2013+0.2%
Q4 2012+4.0%
Q3 2012-1.0%
Q2 2012+0.4%
Q1 2012+1.4%
Q4 2011+0.3%
Q3 2011-5.4%
Q2 2011+2.3%
Q1 2011+1.2%
Q4 2010+1.3%
Q3 2010+0.7%
Q2 2010-1.5%
Q1 2010-0.8%

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