Why Is Southwest Gas (SWX) Down 5.6% Since Last Earnings Report?

A month has gone by since the last earnings report for Southwest Gas (SWX). Shares have lost about 5.6% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Southwest Gas due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Southwest Gas Corporation before we dive into how investors and analysts have reacted as of late.Southwest Gas Q1 Earnings Beat Estimates, Revenues Decline Y/YSouthwest Gas Holdings Inc. recorded first-quarter 2026 operating earnings of $1.91 per share, which beat the Zacks Consensus Estimate of $1.88 by 1.60%. The bottom line increased 15.76% from the year-ago quarter.SWX’s Total RevenuesOperating revenues totaled $585.1 million, which lagged the Zacks Consensus Estimate of $737 million by 20.62%. The top line also decreased 21.61% from $746.4 million in the prior-year quarter.Highlights of SWX’s Earnings ReleaseTotal operating expenses were $365.8 million, down 31.34% year over year. Total operating income was $219.3 million, up 2.63% from $213.7 million in the year-ago quarter.Total system throughput in the first three months of 2026 was 63.85 million dekatherms, down 12.68% from 73.12 million dekatherms in the same period of 2025.Southwest Gas’ Financial HighlightsAs of March 31, 2026, SWX had cash and cash equivalents of $484.8 million compared with $576.6 million as of Dec. 31, 2025.Long-term debt, less current maturities, amounted to $3.43 billion as of March 31, 2026, a tad higher than the 2025-end levels.Southwest Gas’ net cash provided by operating activities in the first three months of 2026 was $162.1 million compared with $291.3 million in the year-ago period.SWX’s 2026 GuidanceSouthwest Gas expects its 2026 earnings per share to be $4.17-$4.32. The Zacks Consensus Estimate is pegged at $4.27, higher than the mid-point of the company’s guided range.The company expects a rate base compound annual growth rate of 9.5-11.5% in the 2026-2030 period. The capital expenditure is projected at $1.25 billion for 2026, while total capital expenditure for 2026-2030 is expected to reach $6.3 billion.How Have Estimates Been Moving Since Then?Estimates revision followed a upward path over the past two months.The consensus estimate has shifted -7.65% due to these changes.VGM ScoresCurrently, Southwest Gas has a poor Growth Score of F, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook Southwest Gas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks