NYSE$SWX

Southwest Gas Holdings Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Announced consolidated earnings increase due to solid performance in infrastructure services and efficient COVID-19 impact management.

Southwest Gas Holdings reported consolidated earnings of $0.32 per diluted share for the third quarter of 2020, a $0.22 increase from $0.10 per diluted share for the third quarter of 2019. The results reflect a solid performance by the Centuri infrastructure services segment and efficient management of COVID-19 impacts in regulated utility operations.

  • Consolidated earnings per share increased to $0.32, up from $0.10 in Q3 2019.
  • Net income for the utility infrastructure services segment was $34.9 million, compared to $25.8 million in the same quarter of the previous year.
  • Customer growth continues to be robust with significant infrastructure installation progress.
  • The natural gas segment had a net loss of $16 million, compared to a net loss of $20 million in the prior year.

Headline financials

Total Revenue

$791M

Previous: $725M+9.1%
EPS (adj)

$0.32

Previous: $0.10+220.0%
Capital Expenditures

-$632M

Previous: -$719M+12.1%
Free Cash Flow

-$614M

Previous: -$714M+14.0%
Net Income

$18.3M

Previous: $5.35M+241.4%
Operating Income

$54.3M

Previous: $38.3M+41.8%
Gross Profit

$288M

Previous: $274M+5.3%
Cash & Equivalents

$23.9M

Previous: $28.5M-15.9%
Total Assets

$8.43B

Previous: $7.84B+7.5%
Stock-Based Comp

$92K

Previous: -$21K+538.1%

Revenue & EPS history

Southwest Gas · Revenue · Quarterly

$791M

Q3 2020+9.1%vs Q3 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Southwest Gas · $211M total across 1 segment · Q3 2020

  • Natural Gas Distribution
    $211M+0.4%

Forward guidance

Management affirms estimated 2020 diluted earnings per share between $3.75 and $4.00.

Tailwinds

  • Operating margin for the natural gas segment is anticipated to benefit from customer growth.
  • Infrastructure tracker mechanisms are expected to increase operating margin.
  • Expansion projects are expected to contribute to operating margin.
  • Rate relief in California, Nevada, and Arizona is expected to increase operating margin.
  • Centuri's revenues for 2020 are expected to be greater than 2019.

Headwinds

  • Governmental policies associated with COVID-19 have influenced operating results.
  • Economic challenges associated with COVID-19 in the communities/operating areas have influenced operating results.
  • The timing of finalizing the Arizona general rate case may affect results.
  • Utility customer growth rates and employment statistics may be influenced by COVID-19.
  • The timing of the release of Centuri project orders from its utility customers may be affected.

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 Q3 2020

Historical avgQ3 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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