The 10-second takeaway
For the quarter ended March 31 (Q1), Southwest Gas beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased.
Margins improved across the board.
Southwest Gas chalked up revenue of $657.6 million. The one analyst polled by S&P Capital IQ expected to see revenue of $583.8 million on the same basis. GAAP reported sales were 4.6% higher than the prior-year quarter's $628.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.70. The five earnings estimates compiled by S&P Capital IQ averaged $1.59 per share. GAAP EPS of $1.70 for Q1 were 15% higher than the prior-year quarter's $1.48 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.3%, 90 basis points better than the prior-year quarter. Operating margin was 20.5%, 40 basis points better than the prior-year quarter. Net margin was 12.0%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $296.3 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $1.83 billion. The average EPS estimate is $2.72.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 97 members out of 105 rating the stock outperform, and eight members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Southwest Gas a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Southwest Gas is outperform, with an average price target of $43.40.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.