Will Lowered Analyst Forecasts and Earnings Pressure Change Southwest Gas Holdings' (SWX) Investment Narrative?

• Southwest Gas Holdings released its third quarter 2025 earnings results pre-market on November 5, 2025, following notable declines in analyst estimates for both full-year 2025 and 2026 revenue and earnings.
• Heightened anticipation around the earnings report has been driven by the previous quarter’s performance, in which Southwest Gas Holdings missed both revenue and earnings expectations.
• We'll now explore how the upcoming earnings release, amid lowered forecasts, may influence Southwest Gas Holdings' broader investment narrative.

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Southwest Gas Holdings Investment Narrative Recap

Investors in Southwest Gas Holdings need to believe in the long-term demand for natural gas across the Southwest, supported by customer growth and infrastructure expansion that could offset policy-driven headwinds. The recent decline in revenue and earnings estimates, combined with the previous quarter’s miss, brings short-term uncertainty; however, this does not materially change the company’s core catalyst, rate base growth through regulated capital investment, and the main risk, which remains regulatory and decarbonization pressures.

One recent company move directly related to these catalysts is the extension and reduction of credit facilities announced in June 2025. This change provides increased funding flexibility for ongoing infrastructure investments, a key ingredient if Southwest Gas Holdings is to capitalize on future demand and maintain regulated earnings growth, despite any near-term earnings volatility.

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Read the full narrative on Southwest Gas Holdings (it's free!)

Southwest Gas Holdings is projected to reach $4.5 billion in revenue and $409.8 million in earnings by 2028. This outlook assumes an annual revenue decline of 1.8% and an increase in earnings of $216.1 million from the current earnings of $193.7 million.

Uncover how Southwest Gas Holdings' forecasts yield a $83.67 fair value, in line with its current price.

Exploring Other Perspectives

Simply Wall St Community members provided two fair value estimates for Southwest Gas Holdings ranging from US$40.48 to US$83.67 per share. Against this backdrop, growing regulatory and decarbonization risks may shape different expectations for the company’s earnings and long-term potential.

Explore 2 other fair value estimates on Southwest Gas Holdings - why the stock might be worth less than half the current price!

Build Your Own Southwest Gas Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Southwest Gas Holdings research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Southwest Gas Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Southwest Gas Holdings' overall financial health at a glance.

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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.

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