Archrock, Inc. (NYSE:AROC) Declares Quarterly Dividend of $0.23

Key Points

• Archrock declared a quarterly dividend of $0.23 per share, payable November 10 to shareholders of record on November 3. The dividend equates to $0.92 annually and a 3.2% yield.
• The dividend appears adequately covered, with a current payout ratio of 50% and an expected future payout ratio of 43.4% based on projected earnings.
• Archrock’s latest quarterly results missed analyst expectations: EPS was $0.38 versus $0.45 expected, while revenue fell 3.1% year over year to $371.24 million.

Archrock, Inc. (NYSE:AROC - Get Free Report) announced a quarterly dividend on Thursday, October 22nd. Shareholders of record on Tuesday, November 3rd will be paid a dividend of $0.23 per share by the energy company on Tuesday, November 10th. This represents a $0.92 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date is Tuesday, November 3rd.

Archrock has raised its dividend by an average of 0.1% annually over the last three years and has increased its dividend every year for the last 3 years. Archrock has a payout ratio of 50.0% meaning its dividend is sufficiently covered by earnings. Research analysts expect Archrock to earn $2.12 per share next year, which means the company should continue to be able to cover its $0.92 annual dividend with an expected future payout ratio of 43.4%.

Archrock Price Performance

AROC stock opened at $28.43 on Friday. The firm has a 50 day moving average price of $31.16 and a 200-day moving average price of $34.70. Archrock has a 52-week low of $22.88 and a 52-week high of $42.23. The firm has a market capitalization of $4.98 billion, a price-to-earnings ratio of 15.59, a PEG ratio of 1.44 and a beta of 0.92. The company has a debt-to-equity ratio of 1.51, a quick ratio of 0.94 and a current ratio of 1.39.

Archrock (NYSE:AROC - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The energy company reported $0.38 earnings per share for the quarter, missing the consensus estimate of $0.45 by ($0.07). Archrock had a return on equity of 22.22% and a net margin of 21.84%. The company had revenue of $371.24 million during the quarter, compared to analysts' expectations of $393.19 million. During the same quarter in the previous year, the company earned $0.39 EPS. The business's quarterly revenue was down 3.1% on a year-over-year basis. Equities research analysts forecast that Archrock will post 1.72 EPS for the current fiscal year.

Hedge Funds Weigh In On Archrock

Several institutional investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new stake in shares of Archrock in the 2nd quarter worth about $1,217,511,000. Bank of America Corp DE purchased a new position in Archrock in the second quarter worth about $262,070,000. Bank of New York Mellon Corp bought a new stake in Archrock during the second quarter worth approximately $84,463,000. Congress Asset Management Co. increased its stake in Archrock by 14.4% during the third quarter. Congress Asset Management Co. now owns 2,532,464 shares of the energy company's stock worth $76,708,000 after acquiring an additional 319,256 shares during the last quarter. Finally, Energy Income Partners LLC purchased a new stake in Archrock during the second quarter valued at approximately $58,510,000. 95.45% of the stock is owned by hedge funds and other institutional investors.

About Archrock

Archrock, Inc NYSE: AROC is a Houston-based energy infrastructure company that provides natural gas compression services in the United States. Compression is used to increase the pressure of natural gas so it can move efficiently through gathering systems, processing facilities, transmission pipelines and other midstream infrastructure.

The company operates a fleet of natural gas compressors and primarily serves customers through contract compression arrangements. Its services support a range of applications, including natural gas gathering, processing, transmission, storage and production.

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