Canada markets closed
  • S&P/TSX

    +345.79 (+1.85%)
  • S&P 500

    +116.01 (+3.06%)
  • DOW

    +823.32 (+2.68%)

    +0.0062 (+0.81%)

    +2.79 (+2.68%)

    +449.42 (+1.63%)
  • CMC Crypto 200

    +8.22 (+1.81%)

    -1.70 (-0.09%)
  • RUSSELL 2000

    +54.06 (+3.16%)
  • 10-Yr Bond

    +0.0570 (+1.86%)

    +375.43 (+3.34%)

    -1.82 (-6.27%)
  • FTSE

    +188.36 (+2.68%)
  • NIKKEI 225

    +320.72 (+1.23%)

    +0.0040 (+0.55%)

Zacks Investment Ideas feature highlights: Southwest Gas Holdings

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

For Immediate Release

Chicago, IL – May 10, 2022 – Today, Zacks Investment Ideas feature highlights Southwest Gas Holdings SWX.

Which Utility Company Did Carl Icahn Just Shake Up?

Southwest Gas Holdings shares rose over 4% in morning trading as investors digested news of a settlement agreement with billionaire Carl Icahn that will replace CEO John Hester and transfer up to four board seats to the activist investor.

Southwest Gas, an energy holding company based in Las Vegas, distributes and transports natural gas in Arizona, Nevada, and California. The utility company also provides installation, maintenance and replacement of underground pipes for energy distribution.

The deal brought to a close a lengthy battle spanning several months as SWX progressed with its plan to purchase Questar Pipelines for approximately $2 billion. Icahn vehemently disagreed with the purchase, saying that it would ultimately hurt shareholders. He argued that Southwest Gas was overpaying for Questar, attacking the utility's executive panel for "poor governance" and "egregious errors". Icahn owns approximately 4% of SWX common shares.

The ousting of Hester was followed by the immediate promotion of Karen Haller to president and CEO. Icahn was adamant about the fact that Hester was "a great liability" to Southwest Gas and that no deal would have been made without Hester's replacement.

Icahn is permitted to appoint at least three directors (and possibly a fourth) following the annual meeting next week. A common move for Icahn, the American financier has built his illustrious career by going to war with companies he believes could be run better. He often asks for board seats in his settlement arrangements before stepping aside as the new appointees become more involved.

SWX, a Zacks Rank #2 (Buy) stock, has exceeded earnings estimates in seven of the past nine quarters. It most recently reported Q4 EPS back in March of $1.61, a 3.21% beat over the $1.56 consensus estimate. The stock has been on a tear as it has advanced over 30% year-to-date and is currently hitting an all-time high in price.

Southwest Gas is slated to report Q1 earnings today after the bell. Analysts are expecting first-quarter EPS of $2.02, a slight -0.49% decline versus the same quarter last year. Stay tuned.

Why Haven't You Looked at Zacks' Top Stocks?

Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.

See Stocks Free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Gas Corporation (SWX) : Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting