What's in Store for Southwest Gas (SWX) in Q2 Earnings?
Southwest Gas Holdings Inc. SWX is scheduled to release second-quarter 2023 results on Aug 9, before market open. The company delivered an earnings surprise of 21.6% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Note
During the first quarter, Arizona general rate case was finalized and became effective with an increase in revenues of $54.3 million. This is expected to have boosted Southwest Gas’ second-quarter results.
Southwest Gas’ second-quarter earnings are likely to have benefited from expanding customer base and strong economic condition in its service areas boosting demand.
The bottom line is expected to have been boosted by lower operations and maintenance (O&M) expenses, owing to the company’s focus on disciplined O&M. Our model predicts O&M expenses of $138.5 million, down 21.2% from the year-ago quarter’s reported figure.
Q2 Expectations
The Zacks Consensus Estimate for second-quarter earnings is pegged at 39 cents per share, indicating a year-over-year increase of 69.6%.
The Zacks Consensus Estimate for revenues is pinned at $1.12 billion, indicating a year-over-year decrease of 2.4%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Southwest Gas this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
Southwest Gas Corporation Price and EPS Surprise
Southwest Gas Corporation price-eps-surprise | Southwest Gas Corporation Quote
Earnings ESP: The company’s Earnings ESP is -1.30%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Southwest Gas carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.
Recent Releases
National Fuel Gas Company NFG reported fiscal third-quarter 2023 earnings of $1.01 per share, which beat the Zacks Consensus Estimate of 90 cents by 12.2%.
NFG’s long-term (three to five years) earnings growth rate is 10.37%. It delivered an average earnings surprise of 4.4% in the last four quarters.
NewJersey Resources NJR reported fiscal third-quarter 2023 earnings of 10 cents per share, which beat the Zacks Consensus Estimate of a loss of 3 cents per share by 433.3%.
NJR’s long-term earnings growth rate is 6%. It delivered an average earnings surprise of 120.8% in the last four quarters.
Atmos Energy Corporation ATO posted fiscal third-quarter 2023 earnings of 94 cents per share, which missed the Zacks Consensus Estimate of 97 cents by 3.1%.
ATO’s long-term earnings growth rate is 7.48%. It delivered an average earnings surprise of 2.4% in the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Gas Corporation (SWX) : Free Stock Analysis Report
Atmos Energy Corporation (ATO) : Free Stock Analysis Report
National Fuel Gas Company (NFG) : Free Stock Analysis Report
NewJersey Resources Corporation (NJR) : Free Stock Analysis Report
