Archrock (NYSE:AROC) Releases Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• Archrock reported quarterly EPS of $0.49, beating analysts’ consensus estimate of $0.45 by $0.04. The company posted a 21.84% net margin and 22.22% return on equity.
• Shares fell $1.43 to $30.27 in midday trading, with the stock trading below its 50-day and 200-day moving averages and down from its 12-month high of $42.23.
• Archrock declared a quarterly dividend of $0.23, equivalent to $0.92 annually and a 3.0% yield. Analysts maintained a consensus “Moderate Buy” rating with an average price target of $42.12.

Archrock (NYSE:AROC - Get Free Report) issued its quarterly earnings results on Monday. The energy company reported $0.49 EPS for the quarter, beating analysts' consensus estimates of $0.45 by $0.04, Zacks reports. Archrock had a return on equity of 22.22% and a net margin of 21.84%.

Archrock Stock Performance

Archrock stock traded down $1.43 during midday trading on Monday, reaching $30.27. The stock had a trading volume of 2,132,637 shares, compared to its average volume of 1,753,053. Archrock has a 12 month low of $22.88 and a 12 month high of $42.23. The firm's 50-day moving average price is $30.89 and its 200 day moving average price is $34.03. The firm has a market capitalization of $5.31 billion, a PE ratio of 16.28, a P/E/G ratio of 1.54 and a beta of 0.92. The company has a quick ratio of 0.94, a current ratio of 1.39 and a debt-to-equity ratio of 1.51.

Archrock Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 10th. Investors of record on Tuesday, November 3rd will be issued a $0.23 dividend. The ex-dividend date of this dividend is Tuesday, November 3rd. This represents a $0.92 annualized dividend and a yield of 3.0%. Archrock's dividend payout ratio (DPR) is 49.46%.

Analysts Set New Price Targets

Several research analysts have weighed in on AROC shares. Evercore set a $40.00 price objective on Archrock in a research report on Monday, August 17th. Zacks Research cut Archrock from a "hold" rating to a "strong sell" rating in a research note on Monday, August 31st. Weiss Ratings cut Archrock from a "buy (b)" rating to a "buy (b-)" rating in a research note on Wednesday. Wells Fargo & Company cut their price target on shares of Archrock from $43.00 to $40.00 and set an "overweight" rating on the stock in a report on Thursday, August 6th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Archrock from $42.00 to $41.00 and set an "overweight" rating for the company in a report on Thursday, October 8th. Nine equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $42.12.

Archrock Company Profile

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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