Why Is USA Compression (USAC) Up 1.5% Since Last Earnings Report?

Core Viewpoint - USA Compression Partners has shown a slight increase in share price but has underperformed compared to the S&P 500, raising questions about future performance leading up to the next earnings release [1][2]. Financial Performance - In Q3, USA Compression reported an adjusted net profit of 26 cents per common unit, exceeding the Zacks Consensus Estimate of 22 cents and improving from 13 cents in the previous year [3]. - The company generated revenues of $250.3 million, a 4.3% increase year-over-year, surpassing the Zacks Consensus Estimate of $247 million, driven by a 3.4% rise in contract operations and a 23.4% increase in related-party revenues [4]. - Adjusted EBITDA rose by 10% to $160.3 million, exceeding the estimate of $146.8 million [4]. - Distributable cash flow increased to $103.8 million from $86.6 million in the prior-year quarter, with net income rising to $34.5 million from $19.3 million [5]. - The average monthly revenue per horsepower increased to $21.46 from $20.60, above the estimate of $21.42, while the horsepower utilization rate was 94%, slightly down from 94.6% a year ago [6]. Cost and Capital Expenditures - The company reported costs and expenses of $166.3 million, down 4.1% from $173.5 million in the previous year [8]. - Growth capital expenditures amounted to $37.3 million, while maintenance capital expenditures were $9 million [8]. Guidance and Future Outlook - USA Compression expects full-year 2025 adjusted EBITDA to be between $610 million and $620 million, with distributable cash flow projected to range from $370 million to $380 million [9]. - Estimates for the company have trended upward, with a 12.5% shift in consensus estimates over the past month, indicating positive market sentiment [10][12]. - The company holds a Zacks Rank 1 (Strong Buy), suggesting expectations for above-average returns in the coming months [12]. Industry Context - USA Compression operates within the Zacks Oil and Gas - Mechanical and Equipment industry, where another player, Nov Inc., has seen a 6.1% gain over the past month despite reporting a slight revenue decline [13]. - Nov Inc. is expected to post earnings of $0.25 per share for the current quarter, reflecting a 39% decrease from the previous year, with a Zacks Rank 3 (Hold) [14].