Overview

* Southwest Gas ( SWX ) Q3 net income rises significantly due to Centuri sale proceeds

* Company's Q3 net income from continuing operations up $13.4 mln yr/yr

* Southwest Gas ( SWX ) completes Centuri separation, repays term loan and bank debt

Outlook

* Southwest Gas ( SWX ) expects 2025 net income between $265 mln and $275 mln

* Company plans $880 mln in 2025 capital expenditures for growth and improvements

* Southwest Gas ( SWX ) anticipates regulatory developments to align investment recovery with projects

Result Drivers

* REGULATORY IMPROVEMENTS - Higher operating margin driven by updated rates aligning with cost of service and capital investments

* CUSTOMER GROWTH - Addition of 40,000 new meter sets contributed to income increase

* COST MANAGEMENT - Lower interest expenses improved corporate and administrative net loss

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EPS $3.74

Q3 Net $270.47

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the natural gas utilities peer group is "buy"

* Wall Street's median 12-month price target for Southwest Gas Holdings Inc ( SWX ) is $84.00, about 2% above its November 4 closing price of $82.34

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)