Archrock (NYSE:AROC) Issues Quarterly Earnings Results

Key Points

• Archrock reported earnings of $0.39 per share for the quarter, exceeding analysts' estimates of $0.38 by $0.01.
• The company announced a quarterly dividend increase to $0.21 per share, yielding 3.7%, with an ex-dividend date of August 5th.
• Archrock initiated a $50 million share repurchase program, indicating management's belief that their shares are undervalued.

Archrock (NYSE:AROC - Get Free Report) issued its quarterly earnings data on Monday. The energy company reported $0.39 EPS for the quarter, topping analysts' consensus estimates of $0.37 by $0.02, Zacks reports. Archrock had a return on equity of 18.74% and a net margin of 17.17%. The company had revenue of $383.15 million for the quarter, compared to analysts' expectations of $366.34 million. During the same quarter in the previous year, the firm posted $0.23 earnings per share. The firm's quarterly revenue was up 41.6% on a year-over-year basis.

Archrock Stock Performance

NYSE:AROC traded up $0.13 during trading hours on Friday, reaching $22.97. 361,772 shares of the stock were exchanged, compared to its average volume of 1,419,749. The company has a quick ratio of 0.96, a current ratio of 1.81 and a debt-to-equity ratio of 1.86. The firm has a 50 day simple moving average of $24.14 and a 200-day simple moving average of $25.11. Archrock has a 52 week low of $18.38 and a 52 week high of $30.44. The stock has a market capitalization of $4.06 billion, a P/E ratio of 17.42, a P/E/G ratio of 1.23 and a beta of 1.10.

Archrock Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, August 12th. Shareholders of record on Tuesday, August 5th will be issued a dividend of $0.21 per share. The ex-dividend date of this dividend is Tuesday, August 5th. This represents a $0.84 dividend on an annualized basis and a yield of 3.7%. This is a boost from Archrock's previous quarterly dividend of $0.19. Archrock's dividend payout ratio (DPR) is 63.64%.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Archrock stock. Jones Financial Companies Lllp boosted its holdings in Archrock, Inc. (NYSE:AROC - Free Report) by 217.9% during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,316 shares of the energy company's stock after acquiring an additional 902 shares during the period. Jones Financial Companies Lllp's holdings in Archrock were worth $35,000 at the end of the most recent quarter. 95.45% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities analysts recently commented on AROC shares. Sidoti raised Archrock to a "hold" rating in a research report on Wednesday, May 7th. Evercore ISI cut their target price on Archrock from $32.00 to $31.00 and set an "outperform" rating on the stock in a research report on Wednesday. One research analyst has rated the stock with a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $28.40.

Archrock declared that its board has approved a share repurchase program on Monday, May 5th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the energy company to buy up to 1.2% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

About Archrock

Archrock, Inc, together with its subsidiaries, operates as an energy infrastructure company in the United States. The company operates in two segments, Contract Operations and Aftermarket Services. It engages in the designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining of its owned fleet of natural gas compression equipment to provide natural gas compression services.