NYSE$SWX

Southwest Gas Holdings Inc. · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Southwest Gas Holdings' Q4 2019 earnings increased compared to Q4 2018.

Southwest Gas Holdings reported a consolidated net income of $91.7 million, or $1.67 per diluted share, for Q4 2019, compared to $69.3 million, or $1.36 per diluted share, for Q4 2018. The increase was primarily driven by an increase in income from COLI investments and growth in both the natural gas operations and utility infrastructure services segments.

  • Consolidated net income for Q4 2019 was $91.7 million, or $1.67 per diluted share, compared to $69.3 million, or $1.36 per diluted share, for Q4 2018.
  • Natural gas operations segment net income was $76.4 million for Q4 2019 compared to $59.5 million for Q4 2018, driven by a COLI cash surrender value increase.
  • Utility infrastructure services segment net income was $15.7 million for Q4 2019 and $9.9 million for Q4 2018, driven by incremental revenues associated with Linetec.
  • Management expects 2020 diluted earnings per share to be between $3.75 and $4.00.

Headline financials

Total Revenue

$380M

Previous: $370M+2.5%
EPS (adj)

$1.56

Previous: $1.54+1.3%
Capital Expenditures

$13M

Previous: $32.1M-59.5%
Free Cash Flow

-$12.6M

Previous: $18.7M-167.5%
Net Income

$91.7M

Previous: $69.3M+32.3%
Operating Income

$138M

Previous: $135M+2.5%
Gross Profit

$234M

Previous: $213M+9.8%
Cash & Equivalents

$49.5M

Previous: $85.4M-42.0%
Total Assets

$8.17B

Previous: $7.36B+11.0%
Stock-Based Comp

-$596K

Previous: -$264K-125.8%

Revenue & EPS history

Southwest Gas · Revenue · Quarterly

$380M

Q4 2019+2.5%vs Q4 2018
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Southwest Gas · $380M total across 1 segment · Q4 2019

  • Natural Gas Distribution
    $380M

Forward guidance

Management expects 2020 diluted earnings per share to be between $3.75 and $4.00.

Tailwinds

  • Operating margin for 2020 is anticipated to benefit from customer growth (1.7%).
  • 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 Arizona results).
  • Centuri’s revenues for 2020 are expected to be 5% to 10% greater than 2019 due to its stable base of large utility clients and related growth opportunities.

Headwinds

  • Pension costs expected to increase $13.6 million primarily due to lower discount rate.
  • Approximately $5.2 million to be reflected in other expense.
  • COLI earnings are estimated at $3 million to $5 million.
  • Net income expectations reflect earnings attributable to Southwest Gas Holdings, net of earnings attributable to noncontrolling interests (estimated at approximately $4 million).
  • Changes in Canadian currency exchange rates could influence results.

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 Q4 2019

Historical avgQ4 2019

-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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