The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about Archrock Inc. (AROC) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Archrock Inc. currently has ...

Archrock Inc. (AROC) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Shares of this natural gas compression services business have returned -4.1% over the past month versus the Zacks S&P 500 composite's -1.6% change. The Zacks Oil and Gas - Field Services industry, to which Archrock Inc. belongs, has lost 9.3% over this period. Now the key question is: Where could ...

Archrock, Inc. (NYSE:AROC) Q1 2024 Earnings Conference Call May 1, 2024 12:00 PM ET Company Participants Megan Repine - VP of IR Bradley Childers - President and CEO Douglas Aron - CFO Conference Call Participants James Rollyson - Raymond James Selman Akyol - Stifel Josh Jayne - Daniel Energy Partners Steve Ferazani - Sidoti Operator Good morning. Welcome to the Archrock First Quarter 2024 Conference Call. Your host for today's call is Megan Repine, Vice President of Investor Relations at Archrock. I will n ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-33666 Archrock, Inc. (Exact name of registrant as specified in its charter) Delaware 74-3204509 (State or other j ...

[Q1 2024 Performance Overview](index=1&type=section&id=Q1%202024%20Performance%20Overview) [First Quarter 2024 Highlights](index=1&type=section&id=First%20Quarter%202024%20Highlights) Archrock reported significant year-over-year growth in key metrics, raised its full-year guidance, and increased its dividend Q1 2024 vs Q1 2023 Key Metrics | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $268.5M | $229.8M | +16.8% | | Net Income | $40.5M | $16.5M | +145.5% | | Adjusted EBITDA | $131.0M | $97.2M | +34.8% | | Leverage Ratio | 3.2x | 4.1x | -0.9x | | Quarterly Dividend | $0.165/share | $0.150/share | +10.0% | - The company raised its 2024 Adjusted EBITDA guidance to a range of **$510 million to $540 million**, up from the previous range of $500 million to $530 million[2](index=2&type=chunk) [Management Commentary and Outlook](index=1&type=section&id=Management%20Commentary%20and%20Outlook) Management credits strong performance to operational execution and sees sustained high utilization driven by positive long-term natural gas demand - The company's earnings momentum is driven by excellent operating execution, a high-quality asset base, and innovative processes and technology[3](index=3&type=chunk) - Archrock expects to maintain **historically high levels of utilization, pricing, and profitability** throughout 2024[3](index=3&type=chunk) - Long-term demand for natural gas is supported by growing energy needs for **LNG exports and domestic power generation**, positioning Archrock as a crucial part of the value chain[4](index=4&type=chunk) [Consolidated Financial Results](index=1&type=section&id=Consolidated%20Financial%20Results) Net income more than doubled year-over-year to $40.5 million, and Adjusted EBITDA grew substantially by 34.8% to $131.0 million Q1 Financial Performance Comparison | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income | $40.5M | $16.5M | | Adjusted EBITDA | $131.0M | $97.2M | - Q1 2024 net income included a non-cash long-lived and other asset impairment of **$2.6 million**, the same amount as in Q1 2023[5](index=5&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) [Contract Operations](index=1&type=section&id=Contract%20Operations) The segment saw a 19% revenue increase and a significant gross margin expansion to 65%, maintaining high utilization at 95% Contract Operations Performance (Q1 2024 vs Q1 2023) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $223.1M | $187.7M | | Gross Margin | $145.3M | $108.3M | | Gross Margin % | 65% | 58% | | Utilization (End of Qtr) | 95% | 94% | - Total operating horsepower increased to **3.6 million** at the end of Q1 2024 from 3.5 million at the end of Q1 2023[6](index=6&type=chunk) - Exit utilization was slightly down sequentially because **19,500 horsepower** of new units were delivered in March but did not begin generating revenue until April[7](index=7&type=chunk) [Aftermarket Services](index=3&type=section&id=Aftermarket%20Services) This segment reported increased revenue and a 27% growth in gross margin, with the margin percentage improving from 19% to 23% Aftermarket Services Performance (Q1 2024 vs Q1 2023) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $45.4M | $42.1M | | Gross Margin | $10.4M | $8.2M | | Gross Margin % | 23% | 19% | [Financial Position and Shareholder Returns](index=3&type=section&id=Financial%20Position%20and%20Shareholder%20Returns) [Balance Sheet and Liquidity](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity) The company maintained a strong balance sheet with $1.6 billion in debt, ample liquidity, and a significantly improved leverage ratio of 3.2x - Long-term debt stood at **$1.6 billion** as of March 31, 2024[9](index=9&type=chunk) - Total available liquidity was **$477.7 million** at the end of the first quarter[9](index=9&type=chunk) - The company's leverage ratio improved to **3.2x** at the end of Q1 2024, compared to 4.1x at the end of Q1 2023[2](index=2&type=chunk)[9](index=9&type=chunk) [Shareholder Returns](index=3&type=section&id=Shareholder%20Returns) Commitment to shareholders was shown through a 10% dividend increase and the extension of its $50 million share repurchase program [Quarterly Dividend](index=3&type=section&id=Quarterly%20Dividend) The company declared a 10% year-over-year dividend increase to $0.165 per share, supported by a strong 3.2x coverage ratio - Declared a quarterly dividend of **$0.165 per share**, which is 10% higher than Q1 2023[2](index=2&type=chunk)[10](index=10&type=chunk) - Dividend coverage for the first quarter of 2024 was strong at **3.2x**[10](index=10&type=chunk) [Share Repurchase Program](index=3&type=section&id=Share%20Repurchase%20Program) Archrock repurchased $1.2 million in shares during the quarter and extended its $50 million repurchase authorization for 24 months - In Q1 2024, the company repurchased **82,972 common shares** for approximately **$1.2 million**[11](index=11&type=chunk) - The Board of Directors extended the share repurchase program for another 24 months and replenished the available capacity to **$50 million**[11](index=11&type=chunk) [2024 Annual Guidance](index=4&type=section&id=2024%20Annual%20Guidance) [Updated 2024 Guidance](index=4&type=section&id=Updated%202024%20Guidance) The company raised its full-year 2024 guidance for Adjusted EBITDA and Net Income, reflecting confidence in continued strong performance Updated Full Year 2024 Guidance | Metric | Low | High | | :--- | :--- | :--- | | Net Income | $144.0M | $174.0M | | Adjusted EBITDA | $510.0M | $540.0M | | Cash available for dividend | $300.0M | $320.0M | | Contract operations revenue | $890.0M | $915.0M | | Aftermarket services revenue | $175.0M | $185.0M | | Growth capital expenditures | $190.0M | $190.0M | [Financial Statements and Supplemental Information](index=5&type=section&id=Financial%20Statements%20and%20Supplemental%20Information) [Summary Metrics](index=5&type=section&id=Summary%20Metrics) This section presents a comparative overview of key financial and operational metrics for Q1 2024 versus prior periods Key Metrics Comparison | Metric | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Net Income | $40.5M | $33.0M | $16.5M | | Adjusted EBITDA | $131.0M | $120.3M | $97.2M | | Cash available for dividend | $82.0M | $71.5M | $46.2M | | Cash available for dividend coverage | 3.2x | 2.8x | 2.0x | | Horsepower utilization (spot) | 95.0% | 96.0% | 94.0% | [Unaudited Condensed Consolidated Statements of Operations](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The income statement shows a significant year-over-year increase in total revenue to $268.5 million and net income to $40.5 million Q1 2024 Income Statement Highlights | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenue | $268.5M | $229.8M | | Income before income taxes | $53.6M | $22.6M | | Net Income | $40.5M | $16.5M | | Diluted EPS | $0.26 | $0.10 | [Non-GAAP Reconciliations](index=11&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of non-GAAP measures like Adjusted EBITDA and Free Cash Flow to their GAAP equivalents - Adjusted EBITDA is reconciled from Net Income by adding back items such as interest expense, taxes, depreciation & amortization, and stock-based compensation[16](index=16&type=chunk)[30](index=30&type=chunk) - Cash Available for Dividend is derived from Adjusted EBITDA by subtracting maintenance and other capital expenditures, cash taxes, and cash interest expense[18](index=18&type=chunk)[32](index=32&type=chunk) - Free Cash Flow is calculated as Net Cash Provided by Operating Activities plus Net Cash Used in Investing Activities[19](index=19&type=chunk)[36](index=36&type=chunk)

Company Performance - Archrock Inc. reported quarterly earnings of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, and showing an increase from $0.10 per share a year ago, representing an earnings surprise of 18.18% [1] - The company posted revenues of $268.49 million for the quarter ended March 2024, surpassing the Zacks Consensus Estimate by 3.06%, compared to revenues of $229.83 million in the same quarter last year [1] - Over the last four quarters, Archrock has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [1] Stock Performance - Archrock Inc. shares have increased approximately 30.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.3% [2] - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $268.43 million, and for the current fiscal year, it is $0.99 on revenues of $1.08 billion [4] Industry Outlook - The Oil and Gas - Field Services industry, to which Archrock belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, indicating potential challenges ahead [5] - Another company in the same industry, Newpark Resources, is expected to report a quarterly earnings decline of 44.4%, with revenues projected to be $170.69 million, down 14.7% from the previous year [5][6]

HOUSTON, April 26, 2024 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE:AROC) ("Archrock" or the "Company") today announced that its Board of Directors has declared a quarterly dividend of $0.165 per share of common stock, or $0.66 per share on an annualized basis. The first quarter 2024 dividend will be paid on May 14, 2024 to all stockholders of record on May 7, 2024. The first quarter 2024 dividend per share amount is consistent with Archrock's fourth quarter 2023 dividend and represents a year-over-year increa ...

Archrock, Inc. (AROC) is set to release first-quarter 2024 results on Apr 30. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 22 cents per share on revenues of $260.5 million.Let’s delve into the factors that might have influenced the Houston, TX-based energy company’s results in the March quarter. But it’s worth taking a look at AROC’s previous-quarter performance first.Highlights of Q4 Earnings & Surprise HistoryIn the last reported quarter, the provider of natural gas-c ...

Archrock Inc. (AROC) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this natural gas compression services business have returned +0.5% over the past month versus the Zacks S&P 500 composite's -4.2% change. The Zacks Oil and Gas - Field Services industry, to which Archrock Inc. belongs, has lost 3.5% over this period. Now the key question is: Where could the stock be h ...

Company Overview - Archrock, Inc. is an energy infrastructure company focused on midstream natural gas compression, committed to safe and environmentally responsible production, compression, and transportation of natural gas [2] Upcoming Financial Event - Archrock will host a conference call on May 1, 2024, at 12:00 p.m. Eastern Time to discuss its first quarter 2024 financial and operating results [1] - The first quarter 2024 earnings report will be released prior to the conference call [1] - The call can be accessed via a live webcast on Archrock's website or by dialing specific numbers for U.S. and international participants [1] Additional Information - Archrock is headquartered in Houston, Texas, and is a premier provider of natural gas compression services across the U.S. [2] - The company also offers aftermarket services to customers owning compression equipment [2] - For more information, Archrock promotes its purpose under the slogan "WE POWER A CLEANER AMERICA™" [2]