Archrock Inc. (AROC) Up 11.1% Since Last Earnings Report: Can It Continue?

Core Insights - Archrock Inc. reported strong second-quarter 2025 earnings, with earnings per share of 39 cents, surpassing the Zacks Consensus Estimate of 37 cents, and showing an improvement from 25 cents in the same quarter last year [3] - Total revenues for the quarter reached $383 million, significantly up from $271 million year-over-year, and also exceeding the Zacks Consensus Estimate of $360 million [3] Operational Performance - The company operates through two segments: Contract Operations and Aftermarket Services. The Contract Operations segment generated revenues of $318.3 million, compared to $225.4 million in the prior year, with total operating horsepower increasing to 4.65 million from 3.6 million [5] - The Aftermarket Services segment reported revenues of $64.8 million, up from $45.1 million in the same quarter of the previous year [6] Costs and Expenses - Total cost of sales for the quarter was $146 million, an increase from $114.4 million in the year-ago period, while depreciation and amortization expenses were $63 million [7] Liquidity Position & Capital Expenditure - As of June 30, 2025, Archrock had long-term debt of $2.6 billion and total available liquidity of $675 million. Net capital expenditures for the second quarter amounted to $82.9 million [8] Dividend Payment - The company declared a quarterly dividend of 21 cents per share, equating to an annualized rate of $0.84, with a dividend coverage ratio of 3.4x [9] Guidance - Archrock expects net income for 2025 to be in the range of $249.6 million to $289.6 million, with growth capital expenditures projected between $340 million and $360 million [10] Market Performance - Archrock's stock has seen an upward trend, gaining approximately 11.1% over the past month, outperforming the S&P 500 [1][2] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [14] Industry Comparison - Archrock operates within the Zacks Oil and Gas - Field Services industry, where competitor Halliburton reported revenues of $5.51 billion, reflecting a year-over-year decline of 5.5% [15] - Halliburton's earnings per share for the same period were $0.55, down from $0.80 a year ago, and it holds a Zacks Rank 4 (Sell) [16]