NYSE$SWX

Southwest Gas Holdings Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Southwest Gas's financial performance was impacted by global inflationary headwinds, seasonality, and business volatility in the first quarter of 2022.

Southwest Gas Holdings reported a net income of $96.2 million, or $1.58 per diluted share, for the first quarter of 2022. Adjusted net income was $106.2 million, or $1.74 per diluted share. The company reaffirmed its full-year 2022 guidance.

  • Adjusted consolidated earnings of $1.74 per diluted share, compared to consolidated earnings of $2.03 per diluted share for the first quarter of 2021.
  • Adjusted consolidated net income of $106.2 million, compared to consolidated net income of $117.2 million for the first quarter of 2021.
  • The company reaffirmed its full-year 2022 guidance.
  • Strategic Alternatives Process to review all strategic alternatives available to maximize value for Southwest Gas stockholders.

Headline financials

Total Revenue

$1.27B

Previous: $886M+43.1%
EPS (adj)

$1.74

Previous: $2.03-14.3%
Capital Expenditures

-$163M

Previous: -$153M-6.6%
Free Cash Flow

-$66.6M

Previous: -$35.4M-88.1%
Net Income

$96.2M

Previous: $117M-18.0%
Operating Income

$168M

Previous: $173M-2.9%
Gross Profit

$764M

Previous: $550M+38.9%
Cash & Equivalents

$625M

Previous: $92.3M+576.4%
Total Assets

$13.2B

Previous: $8.93B+48.4%
Stock-Based Comp

$9.82M

Previous: $7.96M+23.4%

Revenue & EPS history

Southwest Gas · Revenue · Quarterly

$1.27B

Q1 2022+43.1%vs Q1 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Southwest Gas · $677M total across 1 segment · Q1 2022

  • Natural Gas Distribution
    $677M

Forward guidance

Southwest Gas reaffirmed its financial guidance as recently updated.

Tailwinds

  • ROE in 2023 and beyond of 8%+
  • Five-year utility rate base compound annual growth rate of 5% – 7% (2022 – 2026).
  • 5-Year O&M/per customer CAGR of less than 1%.
  • 2022 net income of $200 million to $210 million, which includes COLI earnings of $3 million to $5 million.
  • 2022 capital expenditures of $650 million to $700 million, in support of customer growth, system improvements, and pipe replacement programs.

Headwinds

  • Global inflationary headwinds
  • Seasonality
  • Business volatility at infrastructure services business
  • Higher fuel, equipment rental, and subcontractor costs impacted Centuri's performance
  • Inclement weather in upper Midwest and Eastern U.S. delayed the start of certain large gas utility projects.

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 2022

Historical avgQ1 2022

-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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