Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks ...

Core Insights - USA Compression Partners (USAC) reported a second-quarter adjusted net profit of 22 cents per common unit, exceeding the Zacks Consensus Estimate of 21 cents, and improved from the previous year's adjusted net profit of 21 cents per common unit due to increased average revenue per horsepower [1][2] Financial Performance - The company generated revenues of $250 million, a 6% increase from the previous year's quarter, surpassing the Zacks Consensus Estimate of $245 million, driven by a 1% rise in Contract operations, a 28% increase in Parts and service revenues, and an 8% rise in Related party revenues [2] - Adjusted EBITDA rose 4% to $149.5 million, exceeding the estimate of $143.7 million [2] - Distributable cash flow increased to $89.9 million from $85.9 million in the prior-year quarter, with net income reported at $28.6 million compared to $31.2 million a year ago [3] - Net operating cash flow was $54.7 million, down from $65.9 million in the previous year [3] - Adjusted gross operating margin decreased to 65.4% from 66.8% in the year-ago period [3] Operational Metrics - Revenue-generating capacity slightly declined year over year to 3.5 million horsepower, but was 1% higher than estimates [4] - Average monthly revenue per horsepower increased to $21.31 from $20.29 in the second quarter of 2024, although it was below the estimate of $21.86 [4] - Average quarterly horsepower utilization rate was 94.4%, slightly down from 94.7% a year ago [4] Cash Flow and Capital Expenditures - Distributable cash flow available to limited partners totaled $89.9 million, providing 1.4X distribution coverage, up 4.7% from the year-ago level [5] - The company declared a cash distribution of 52.5 cents per unit for the second quarter, to be paid on August 8, 2025 [5] - Total costs and expenses were reported at $173.5 million, a 9.9% increase from the previous year's $157.9 million, with growth capex at $18.1 million and maintenance capex at $11.7 million [6] Guidance - For the full year 2025, USAC expects adjusted EBITDA to be between $590 million and $610 million, with distributable cash flow projected to range from $350 million to $370 million [7] - Expansion capital expenditures are anticipated to be between $120 million and $140 million, while maintenance capital expenditures are expected to total between $38 million and $42 million [7]

Core Insights - Archrock reported outstanding performance in Q2 2025, completing the acquisition of NGCS and achieving a record utilization rate of 96% across its fleet [3][4][5] - The company raised its 2025 adjusted EBITDA guidance and increased its quarterly cash dividend per share, reflecting confidence in future growth [5][16] Financial Performance - Q2 2025 net income was $63.4 million, up from $34.4 million in Q2 2024, with adjusted net income reaching $68.4 million compared to $35.8 million in the prior year [6][8] - Total revenue for Q2 2025 was $383.2 million, a 42% increase from $270.5 million in Q2 2024 [8][39] - Adjusted EBITDA for Q2 2025 was $212.7 million, compared to $129.7 million in Q2 2024, indicating strong operational performance [8][22] Segment Performance - Contract operations segment revenue increased by 41% to $318.3 million in Q2 2025, with an adjusted gross margin percentage of 70% [8][12] - Aftermarket services segment revenue rose to $64.8 million, with an adjusted gross margin percentage of 23% [12][22] Shareholder Returns - The company declared a quarterly dividend of $0.21 per share, approximately 27% higher than the previous year, with a dividend coverage ratio of 3.4x [14][22] - Archrock returned $96.9 million to shareholders through dividends and share repurchases in the first half of 2025, compared to $53.0 million in the same period of 2024 [5][8] Balance Sheet and Guidance - Long-term debt stood at $2.6 billion with available liquidity of $675 million as of June 30, 2025, resulting in a leverage ratio of 3.3x [13][47] - The revised full-year 2025 guidance includes net income between $249.6 million and $289.6 million and adjusted EBITDA between $810 million and $850 million [16][17]

Group 1: Earnings Performance - FMC Technologies reported quarterly earnings of $0.68 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and up from $0.43 per share a year ago [1] - The earnings surprise for the quarter was +19.30%, while the previous quarter saw a surprise of -8.33% with actual earnings of $0.33 per share against an expectation of $0.36 [2] - Over the last four quarters, FMC Technologies has surpassed consensus EPS estimates three times [2] Group 2: Revenue Performance - The company posted revenues of $2.53 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.19%, compared to $2.33 billion in the same quarter last year [3] - FMC Technologies has also topped consensus revenue estimates three times over the last four quarters [3] Group 3: Stock Performance and Outlook - FMC Technologies shares have increased approximately 16.1% since the beginning of the year, outperforming the S&P 500's gain of 8.1% [4] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.61 for the coming quarter and $2.07 for the current fiscal year [5][8] - The Zacks Rank for FMC Technologies is currently 3 (Hold), indicating expected performance in line with the market in the near future [7] Group 4: Industry Context - The Oil and Gas - Field Services industry, to which FMC Technologies belongs, is currently ranked in the bottom 4% of over 250 Zacks industries, suggesting potential challenges ahead [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact FMC Technologies' stock performance [6]

Company Overview - Archrock Inc. (AROC) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.37, reflecting a +48% change, and revenues anticipated at $360.26 million, up 33.2% from the previous year [3]. Earnings Expectations - The consensus EPS estimate has been revised 2.44% lower over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Archrock is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +10.81% [12]. Earnings Surprise History - In the last reported quarter, Archrock exceeded expectations by delivering an EPS of $0.42 against an expected $0.39, resulting in a surprise of +7.69% [13]. - Over the last four quarters, Archrock has beaten consensus EPS estimates three times [14]. Market Sentiment - Despite the positive Earnings ESP, Archrock currently holds a Zacks Rank of 4 (Sell), complicating predictions of an earnings beat [12][20]. - The stock's movement may be influenced by how actual results compare to estimates, with potential for upward movement if results exceed expectations [2].

ARCHROCK, INC. February 2024 Forward-Looking Statements All statements in this presentation (and oral statements made regarding the subjects of this presentation) other than historical facts are forward–looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward–looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from ...

Company Performance - Archrock Inc. (AROC) closed at $24.36, reflecting a -2.33% change from the previous day's closing price, underperforming the S&P 500 which gained 0.96% [1] - Over the past month, shares of Archrock have appreciated by 0.65%, underperforming the Oils-Energy sector's gain of 6.67% but outperforming the S&P 500's gain of 0.5% [2] - Analysts expect Archrock to report earnings of $0.38 per share, indicating a year-over-year growth of 52%, with a revenue estimate of $360.26 million, representing a 33.17% increase from the same quarter last year [3] - For the entire fiscal year, earnings are projected at $1.62 per share and revenue at $1.47 billion, reflecting changes of +54.29% and +27.02% respectively from the prior year [4] Analyst Estimates - Recent changes to analyst estimates for Archrock indicate a positive outlook on the company's business operations and profit generation capabilities [5] - The Zacks Rank system, which evaluates estimate changes, currently ranks Archrock at 4 (Sell), with the consensus EPS estimate remaining unchanged over the last 30 days [7] Valuation Metrics - Archrock is trading at a Forward P/E ratio of 15.36, which aligns with the industry average [8] - The company has a PEG ratio of 1.28, compared to the Oil and Gas - Field Services industry's average PEG ratio of 3.65 [9] Industry Context - The Oil and Gas - Field Services industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 141, placing it in the bottom 43% of over 250 industries [10]

Financial Data and Key Metrics Changes - Archrock reported a net income of $71 million for Q1 2025, with adjusted net income of $74 million or $0.42 per share, reflecting a significant increase compared to the previous year [25][26] - Adjusted EBITDA for Q1 2025 was $198 million, showing strong underlying business performance [26] - The leverage ratio at the end of the quarter was 3.2 times, down from 3.3 times in the previous quarter, indicating improved financial strength [29] Business Line Data and Key Metrics Changes - Contract operations revenue reached $300 million in Q1 2025, up 5% from Q4 2024 and 35% year-over-year, driven by organic horsepower growth and higher pricing [27] - The aftermarket services segment reported revenue of $47 million, up from $40 million in the previous quarter, with an adjusted gross margin percentage of 25% [28] - Monthly revenue per horsepower increased to a record $23.54 during Q1 2025, with a consistent adjusted gross margin percentage of 70% for two consecutive quarters [19][20] Market Data and Key Metrics Changes - The compression market fundamentals remained strong, with utilization rates at 96% and a substantial contracted backlog for 2025 [11][18] - The company is closely monitoring market developments, particularly regarding OPEC's production actions and their potential impact on natural gas demand [12][13] Company Strategy and Development Direction - Archrock is focused on value-creating industry consolidation, with the integration of Total Operations and Production Services (TOPS) progressing as planned and the recent acquisition of NGCS expected to enhance scale and customer relationships [10][30] - The company plans to maintain a leverage ratio between 3 to 3.5 times while continuing to invest in growth capital expenditures between $330 million and $370 million [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through macroeconomic uncertainties, citing a stable production-oriented business model and strong customer demand for natural gas [12][13] - The company anticipates continued growth in global natural gas demand, supporting infrastructure investments in the U.S. for decades to come [16][17] Other Important Information - Archrock increased its quarterly dividend per share by 15% year-over-year, with a robust dividend coverage of 3.9 times [9][29] - The company has repurchased approximately 977,000 shares at an average price of $23.22 per share, with a remaining capacity of $65 million for additional buybacks [9][29] Q&A Session Summary Question: Impact of macro headwinds on gas and oil growth - Management noted that while some producers are reducing CapEx modestly, the committed backlog for 2025 remains unaffected, ensuring continued growth [36][37] Question: Equipment pricing and tariffs - Management indicated that pricing for equipment is largely locked in for 2025 and that the impact of tariffs on costs is estimated to be in the low single digits [39][40] Question: Decisive actions in response to market conditions - Management emphasized the importance of staying close to customers and highlighted the operational flexibility to adjust CapEx and OpEx as needed [44][45] Question: Pricing assumptions and guidance for NGCS - Management confirmed that there are no changes in pricing strategy and that the acquisition of NGCS can be absorbed without increasing CapEx guidance [48][50] Question: Compression intensity in different basins - Management explained that compression intensity is highest in the Permian, but they have the ability to adjust operations based on where gas production is occurring [57][58] Question: Demand for electric compression - Management stated that about 30% of the new build CapEx budget is still dedicated to electric compression, but availability of power remains a limiting factor [70][71] Question: Positioning for potential slowdowns - Management highlighted the differentiated positioning of the company compared to past cycles, with a more balanced customer base and a younger, higher horsepower fleet [75][76] Question: Contract flexibility and outsourcing trends - Management confirmed that contracts are binding but they work with customers to accommodate changes within limits, and noted an increase in outsourcing among customers [79][81] Question: Pricing of older versus new compression assets - Management indicated that there is no significant pricing differential between new and used equipment within the first few contract applications, although older equipment may see some differences [84][85]

Financial Data and Key Metrics Changes - Archrock reported a net income of $71 million for Q1 2025, with adjusted net income of $74 million or $0.42 per share, reflecting a significant increase compared to the previous year [23][27] - Adjusted EBITDA for Q1 2025 was $198 million, showing strong underlying business performance [23] - The leverage ratio at the end of the quarter was 3.2 times, down from 3.3 times in the previous quarter, indicating improved financial stability [26] Business Line Data and Key Metrics Changes - Contract operations revenue reached $300 million in Q1 2025, up 5% sequentially and 35% year-over-year, driven by organic horsepower growth and higher pricing [24][25] - The aftermarket services segment reported revenues of $47 million, up from $40 million in the previous quarter, with an adjusted gross margin percentage of 25% [26] - Monthly revenue per horsepower increased to a record $23.54 during Q1 2025, with a consistent adjusted gross margin percentage of 70% [17][18] Market Data and Key Metrics Changes - The compression market fundamentals remained strong, with utilization rates at 96% and a substantial contracted backlog for 2025 [10][16] - Archrock is closely monitoring market developments, particularly regarding OPEC's production actions and their potential impact on WTI prices [11][12] Company Strategy and Development Direction - Archrock is focused on value-creating industry consolidation, with the integration of Total Operations and Production Services (TOPS) progressing as planned and the recent acquisition of NGCS expected to enhance scale and customer relationships [8][9] - The company aims to maintain a leverage ratio between 3 to 3.5 times while continuing to invest in growth capital expenditures between $330 million and $370 million for 2025 [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to manage business in various market conditions, citing a stable production-oriented business model and a disciplined capital allocation strategy [12][13] - The long-term outlook remains positive, with expectations for continued growth in global natural gas demand supporting infrastructure investments in the U.S. [14][15] Other Important Information - The quarterly dividend per share was increased by 15% year-over-year, with a robust dividend coverage of 3.9 times [7][27] - Archrock has repurchased approximately 977,000 shares at an average price of $23.22 per share, with a remaining capacity of $65 million for additional buybacks [7][27] Q&A Session Summary Question: Impact of macro headwinds on gas outlook - Management noted that while some producers are adjusting CapEx modestly, the committed backlog for 2025 remains unaffected, indicating stability in deployment plans [33][34] Question: Equipment pricing and tariffs - Management indicated that pricing for orders is locked in, and the estimated impact of tariffs on equipment costs is in the low single-digit range [36][37] Question: Decisive actions in response to market conditions - Management emphasized operational flexibility, with the ability to adjust both OpEx and CapEx quickly in response to market changes [41][42] Question: Pricing assumptions and guidance - Management confirmed no changes in overall pricing strategy, with pricing increases moderating but still reflecting a tight compression market [45][46] Question: NGCS acquisition details - The acquisition is expected to contribute positively to earnings without requiring additional material investment in equipment [50][51] Question: Compression intensity in different basins - Management highlighted that the Permian has the highest compression intensity, but growth in other basins is being observed without a shift away from the Permian [53][54] Question: Demand for electric compression - Approximately 30% of the new build CapEx budget is allocated to electric compression, with demand remaining stable [65][66] Question: Positioning for potential slowdowns - Management noted that the current customer mix and high utilization levels provide a different level of stability compared to previous cycles [68][70]

Company Performance - Archrock Inc. reported quarterly earnings of $0.42 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, and up from $0.26 per share a year ago, representing an earnings surprise of 7.69% [1] - The company posted revenues of $347.16 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.55%, compared to revenues of $268.49 million in the same quarter last year [2] - Over the last four quarters, Archrock has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.39 on revenues of $354.08 million, and for the current fiscal year, it is $1.66 on revenues of $1.46 billion [7] - The estimate revisions trend for Archrock is favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Oil and Gas - Field Services industry, to which Archrock belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8] - Another company in the same industry, Nine Energy Service, is expected to report a quarterly loss of $0.15 per share, with a year-over-year change of +37.5%, indicating challenges within the sector [9]