NYSE$SWX

Southwest Gas Holdings Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong second quarter results for utility net income and Centuri revenue.

Southwest Gas Holdings reported strong second quarter financial results, with the utility segment's net income up $21 million and Centuri's revenue up approximately $14 million compared to the same period last year. The company is progressing on its strategic priorities, including the spin-off of Centuri.

  • Southwest Gas Corporation earnings increased by $21 million in Q2 2023 compared to Q2 2022.
  • Centuri Group, Inc. results increased by approximately $14 million compared to the same period.
  • Consolidated net earnings were $0.40 per diluted share (adjusted $0.47) for Q2 2023, compared to $(0.10) per diluted share (adjusted $0.23) for Q2 2022.
  • The company advanced Centuri spin by confidentially submitting a draft Registration Statement on Form 10 with the SEC.

Headline financials

Total Revenue

$1.29B

Previous: $1.15B+12.9%
EPS (adj)

$0.47

Previous: $0.23+104.3%
Capital Expenditures

-$439M

Previous: -$368M-19.2%
Free Cash Flow

-$410M

Previous: -$375M-9.4%
Net Income

$28.9M

Previous: -$6.58M+539.2%
Operating Income

$84.8M

Previous: $45.7M+85.7%
Gross Profit

$578M

Previous: $500M+15.6%
Cash & Equivalents

$221M

Previous: $216M+2.5%
Total Assets

$12B

Previous: $12.9B-7.5%
Stock-Based Comp

-$596K

Previous: $778K-176.6%

Revenue & EPS history

Southwest Gas · Revenue · Quarterly

$1.29B

Q2 2023+12.9%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Southwest Gas · $488M total across 1 segment · Q2 2023

  • Natural Gas Distribution
    $488M

Forward guidance

Southwest Gas provided guidance for 2023, including net income for the natural gas distribution segment and revenue and adjusted EBITDA margin for Centuri.

Tailwinds

  • 2023 net income guidance of $205 - $215 million (assumes $3 - $5 million of COLI earnings) for Natural Gas Distribution.
  • Increasing 2023 capital expenditures guidance to $700 - $720 million in support of customer growth, system improvements, and pipe replacement programs for Natural Gas Distribution.
  • 3 - Year capital expenditures of approximately $2.0 billion for Natural Gas Distribution.
  • 3 - Year utility rate base compound annual growth rate of 5% - 7% for Natural Gas Distribution.
  • 2023 revenues of $2.8 billion to $3.0 billion for Centuri.

Headwinds

  • Centuri Separation is subject to, among other things, the receipt of a favorable Internal Revenue Service private letter ruling relating to the tax-free nature of the transaction.
  • Centuri Separation is subject to SEC review and Form 10 effectiveness.
  • Centuri Separation is subject to final approval by the Southwest Gas Board of Directors.
  • The company can provide no assurance that its discussions about future operating margin, operating income, COLI earnings, interest expense, and capital expenditures of the natural gas distribution segment will occur.
  • The company can provide no assurance regarding segment revenues, EBITDA, EBITDA margin or growth rates, that projects expected to be undertaken with results as stated will occur, nor that interest expense patterns will transpire as expected

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 Q2 2023

Historical avgQ2 2023

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro