Industry Overview - The Zacks Oil and Gas - Field Services industry is facing challenges due to strict capital management by upstream energy firms, leading to decreased demand for oilfield services [1] - Companies in this sector must effectively navigate the evolving energy transition landscape to succeed, as failing to meet energy transition objectives could negatively impact cash flow [1][6] - The industry comprises companies providing support services to exploration and production players, including well maintenance, drilling equipment leasing, and seismic testing [3] Current Trends - The demand for oilfield services is highly volatile and closely tied to exploration and production activities, making companies susceptible to commodity price fluctuations [4] - There has been a slowdown in drilling activities as upstream players prioritize stockholder returns over increasing output, resulting in lower demand for oilfield services [5] - The industry's ability to adapt to decarbonization and low-carbon technologies is crucial for maintaining cash flow [6] Industry Performance - The Zacks Oil and Gas - Field Services industry currently holds a Zacks Industry Rank of 212, placing it in the bottom 15% of over 250 Zacks industries, indicating a bearish outlook [7][8] - Over the past year, the industry has underperformed compared to the S&P 500 and the broader Zacks Oil - Energy sector, with an 11% increase versus 28.5% and 19.4% respectively [9] Valuation Metrics - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 7.04X, compared to the S&P 500's 18.59X and the sector's 3.90X [11] - Historical trading ranges for the industry have been between 1.01X and 12.73X over the past five years, with a median of 8.16X [11] Key Companies - **Archrock Inc (AROC)**: Recently acquired Total Operations and Production Services, enhancing its capacity with a fully electric compression fleet and positioning itself as a leader in electrified natural gas compression [13] - **Baker Hughes Company (BKR)**: Focused on growth through advanced LNG and energy technologies, with significant involvement in the Louisiana LNG project and expansion in Namibia [15] - **Smart Sand Inc (SND)**: A leading manufacturer of Northern White sand, known for its quality and cost-effectiveness, serving as a premium proppant in hydraulic fracturing [16]

Company Performance - Archrock Inc. (AROC) closed at $25.36, down 1.93% from the previous trading day, underperforming the S&P 500 which lost 1.11% [1] - Over the past month, Archrock's shares gained 2.13%, outperforming the Oils-Energy sector which declined by 11.62% and the S&P 500's loss of 1.7% [1] Earnings Projections - The upcoming earnings report for Archrock is projected to show earnings per share (EPS) of $0.31, a 47.62% increase year-over-year [2] - The Zacks Consensus Estimate for revenue is $326.08 million, reflecting a 25.61% increase from the same quarter last year [2] Analyst Estimates - Recent modifications to analyst estimates for Archrock indicate changing business trends, with positive revisions suggesting analyst optimism about the company's profitability [3] - The Zacks Rank system, which reflects these estimate changes, currently ranks Archrock at 4 (Sell) [5] Valuation Metrics - Archrock has a Forward P/E ratio of 18.83, which is higher than the industry average of 15.42, indicating it is trading at a premium [6] - The company has a PEG ratio of 1.57, compared to the industry average PEG ratio of 1.16, suggesting a higher expected earnings growth trajectory [7] Industry Context - The Oil and Gas - Field Services industry, to which Archrock belongs, has a Zacks Industry Rank of 200, placing it in the bottom 21% of over 250 industries [7] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Group 1: Analyst Recommendations - Archrock Inc. (AROC) has an average brokerage recommendation (ABR) of 1.29, indicating a consensus between Strong Buy and Buy [2] - The current ABR is based on recommendations from seven brokerage firms, with five Strong Buy and two Buy, representing 71.4% and 28.6% of all recommendations respectively [2] Group 2: Limitations of Brokerage Recommendations - Relying solely on brokerage recommendations for investment decisions may not be wise, as studies show limited success in guiding investors to stocks with the best price increase potential [4] - Brokerage firms often exhibit a strong positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [5][9] Group 3: Zacks Rank vs. ABR - The Zacks Rank, which classifies stocks based on earnings estimate revisions, is a more reliable indicator of near-term price performance compared to ABR [7][10] - Zacks Rank is updated more frequently and reflects timely changes in earnings estimates, while ABR may not be up-to-date [11] Group 4: Current Earnings Estimates for Archrock Inc. - The Zacks Consensus Estimate for Archrock Inc. has remained unchanged at $1 over the past month, indicating steady analyst views on the company's earnings prospects [12] - Due to the unchanged consensus estimate and other factors, Archrock Inc. currently holds a Zacks Rank of 3 (Hold), suggesting caution despite the Buy-equivalent ABR [13]

Core Viewpoint - Archrock Inc. has shown strong stock performance recently, with a return of +12.7% over the past month, significantly outperforming the Zacks S&P 500 composite's +1.5% change, while the Zacks Oil and Gas - Field Services industry has declined by 3.2% [2] Earnings Estimates - For the current quarter, Archrock Inc. is expected to report earnings of $0.31 per share, reflecting a year-over-year increase of +47.6%, although the Zacks Consensus Estimate has decreased by -7% in the last 30 days [5] - The consensus earnings estimate for the current fiscal year stands at $1, indicating a year-over-year change of +44.9%, with a recent adjustment of -3.1% [5] - For the next fiscal year, the consensus earnings estimate is $1.37, representing a +37.3% change from the previous year, but has seen a decrease of -8.7% recently [6] Revenue Growth - The consensus sales estimate for the current quarter is $326.08 million, which indicates a year-over-year increase of +25.6% [9] - For the current fiscal year, the revenue estimate is $1.16 billion, reflecting a +16.9% change, while the next fiscal year's estimate is $1.37 billion, indicating an +18.5% change [9] Recent Performance - In the last reported quarter, Archrock Inc. achieved revenues of $292.16 million, a year-over-year increase of +15.3%, and an EPS of $0.28 compared to $0.20 a year ago [10] - The company reported a revenue surprise of -0.27% against the Zacks Consensus Estimate and an EPS surprise of 0% [10] - Over the last four quarters, Archrock Inc. has surpassed consensus EPS estimates twice and revenue estimates twice [10] Valuation - Archrock Inc. has a Zacks Value Style Score of C, indicating that it is trading at par with its peers [14] - The evaluation of valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) is essential for determining whether the stock is fairly valued [12][13] Conclusion - The analysis suggests that Archrock Inc. may perform in line with the broader market in the near term, as indicated by its Zacks Rank 3 [15]

Group 1 - Archrock Compression (NYSE: AROC) reported positive third quarter earnings with improvements in both revenue and gross margin [1] - The results reflect the immediate impact of the TOPS acquisition after just one month of ownership [1]

Core Viewpoint - The average brokerage recommendation (ABR) for Archrock Inc. (AROC) is 1.29, indicating a consensus leaning towards a "Strong Buy" to "Buy" rating, but reliance solely on this metric may not be advisable due to potential biases in brokerage recommendations [2][3][8]. Group 1: Brokerage Recommendations - Archrock Inc. has an ABR of 1.29, with five "Strong Buy" and two "Buy" recommendations, representing 71.4% and 28.6% of total recommendations respectively [2]. - Despite the favorable ABR, studies suggest that brokerage recommendations often do not effectively guide investors towards stocks with significant price appreciation potential [3][8]. - Brokerage firms may exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of "Strong Buy" recommendations compared to "Strong Sell" [4][8]. Group 2: Zacks Rank vs. ABR - The Zacks Rank, which classifies stocks from 1 (Strong Buy) to 5 (Strong Sell), is a more reliable indicator of near-term price performance compared to ABR, as it is based on earnings estimate revisions [6][9]. - The Zacks Rank is updated more frequently than ABR, reflecting timely changes in analysts' earnings estimates, which correlates strongly with stock price movements [10]. - Archrock Inc. currently holds a Zacks Rank of 3 (Hold), indicating a cautious outlook despite the positive ABR [12]. Group 3: Earnings Estimates - The Zacks Consensus Estimate for Archrock Inc. remains unchanged at $1.10 for the current year, suggesting stable analyst views on the company's earnings prospects [11]. - The lack of change in the consensus estimate may indicate that Archrock Inc. is likely to perform in line with the broader market in the near term [11].

Group 1: Archrock (AROC) - Archrock reported Q3 earnings of $0.28 per share, an increase from $0.20 in the prior-year quarter, with sales of $292.16 million, up 15% year over year [2] - The stock has increased over 50% year to date, trading under $25 with a forward earnings multiple of 22.1X [3] - Annual earnings are projected to grow by 59% this year and an additional 37% in FY25, reaching $1.50 per share, with total sales expected to exceed $1 billion in FY24 and FY25 [3] Group 2: Monday.com (MNDY) - Monday.com achieved Q3 EPS of $0.85, surpassing the Zacks Consensus of $0.61 by 39%, with sales of $251 million, a 32% increase from $189.19 million a year ago [5] - The company is experiencing high double-digit top line growth expectations for FY24 and FY25, contributing to increased profitability [6] - MNDY has gained over 40% in 2024 and over 150% in the last two years, with a 50% increase since its IPO in June 2021 [8]

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 September 30, 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 oth ...

Financial Data and Key Metrics Changes - Archrock reported its financial and operating results for Q3 2024, with specific figures available on the company's website [4] - Management emphasized the use of non-GAAP financial measures, including adjusted net income and adjusted EBITDA, with reconciliations provided in their filings [5] Business Line Data and Key Metrics Changes - Specific details regarding changes in various business lines were not provided in the available content Market Data and Key Metrics Changes - Information on market data and key metrics changes was not included in the provided content Company Strategy and Development Direction and Industry Competition - The company is focused on its current beliefs and expectations, with forward-looking statements made during the call [4] - Management indicated that they believe their expectations are reasonable but cannot assure that actual results will align with these expectations [5] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the potential for actual results to differ materially from forward-looking statements due to various factors [5] Other Important Information - The call included a disclaimer regarding forward-looking statements and the use of non-GAAP financial measures [4][5] Q&A Session All Questions and Answers - No specific questions and answers from the Q&A session were provided in the available content

Core Viewpoint - Archrock, Inc. reported its financial and operating results for the third quarter of 2024, indicating ongoing performance and strategic direction in the market [4]. Group 1: Company Overview - Archrock's conference call was hosted by Megan Repine, Vice President of Investor Relations, with participation from key executives including President and CEO Brad Childers and CFO Doug Aron [3][4]. - The company emphasized the importance of forward-looking statements based on current beliefs and expectations, as well as assumptions made by the management team [4]. Group 2: Financial Performance - The financial results for Q3 2024 were released, with details available on the company's website [4]. - The discussion included references to non-GAAP financial measures such as adjusted net income, adjusted EBITDA, adjusted gross margin, and adjusted gross margin percentage, highlighting the company's financial health [5].