The Southwest Gas Holdings, Inc. (NYSE:SWX) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

Investors in Southwest Gas Holdings, Inc. (NYSE:SWX) had a good week, as its shares rose 4.1% to close at US$75.01 following the release of its quarterly results. It was a curious result overall, with revenues coming in 3.2% below what the analysts had expected, at US$1.1b. The company broke even in terms of statutory earnings per share (EPS). 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Southwest Gas Holdings after the latest results.

See our latest analysis for Southwest Gas Holdings

Taking into account the latest results, Southwest Gas Holdings' three analysts currently expect revenues in 2025 to be US$5.14b, approximately in line with the last 12 months. Statutory earnings per share are predicted to shoot up 46% to US$3.65. Before this earnings report, the analysts had been forecasting revenues of US$5.17b and earnings per share (EPS) of US$3.66 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$79.00, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Southwest Gas Holdings analyst has a price target of US$89.00 per share, while the most pessimistic values it at US$73.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.1% by the end of 2025. This indicates a significant reduction from annual growth of 14% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.4% per year. 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$79.00, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Southwest Gas Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Southwest Gas Holdings going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 3 warning signs for Southwest Gas Holdings (1 shouldn't be ignored!) that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.