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Southwest Gas Holdings, Inc. (NYSE:SWX) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Statutory earnings per share disappointed, coming in -26% short of expectations, at US$1.22. Fortunately revenue performance was a lot stronger at US$1.6b arriving 15% ahead of predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Southwest Gas Holdings
After the latest results, the consensus from Southwest Gas Holdings' twin analysts is for revenues of US$5.01b in 2024, which would reflect a small 7.3% decline in revenue compared to the last year of performance. Statutory earnings per share are predicted to jump 24% to US$3.33. In the lead-up to this report, the analysts had been modelling revenues of US$5.07b and earnings per share (EPS) of US$3.37 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$79.33.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 9.7% annualised decline to the end of 2024. That is a notable change from historical growth of 15% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.3% annually for the foreseeable future. It's pretty clear that Southwest Gas Holdings' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Southwest Gas Holdings' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.