Zacks Research Issues Negative Estimate for USAC Earnings

Key Points

• Zacks Research cut USA Compression Partners’ earnings outlook, lowering Q3 2026 EPS estimates to $0.19 from $0.25 and assigning the stock a “Strong Sell” rating. Full-year 2026 EPS is now projected at $1.00.
• USAC’s latest quarter exceeded expectations, with EPS of $0.31 versus the $0.28 consensus and revenue of $342.15 million versus estimates of $340.49 million.
• The partnership offers a substantial 7.8% dividend yield based on its $0.525 quarterly distribution, but its roughly 198% payout ratio raises questions about distribution sustainability. Analysts collectively rate the stock “Hold,” with a $29.25 consensus price target.

USA Compression Partners, LP (NYSE:USAC - Free Report) - Equities researchers at Zacks Research reduced their Q3 2026 earnings per share (EPS) estimates for shares of USA Compression Partners in a note issued to investors on Tuesday, August 25th. Zacks Research analyst Team now forecasts that the oil and gas company will post earnings of $0.19 per share for the quarter, down from their previous estimate of $0.25. Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for USA Compression Partners' current full-year earnings is $1.00 per share. Zacks Research also issued estimates for USA Compression Partners' Q4 2026 earnings at $0.23 EPS, FY2026 earnings at $1.00 EPS, Q1 2027 earnings at $0.29 EPS, Q2 2027 earnings at $0.27 EPS, Q3 2027 earnings at $0.27 EPS, Q4 2027 earnings at $0.29 EPS, FY2027 earnings at $1.12 EPS, Q1 2028 earnings at $0.31 EPS and FY2028 earnings at $1.36 EPS.

A number of other research analysts have also recently weighed in on the stock. Royal Bank Of Canada lifted their price objective on shares of USA Compression Partners from $29.00 to $30.00 and gave the company a "sector perform" rating in a report on Friday, June 5th. Mizuho lifted their price target on USA Compression Partners from $28.00 to $29.00 and gave the stock a "neutral" rating in a report on Friday, June 12th. Finally, Citigroup upped their target price on shares of USA Compression Partners from $26.00 to $28.00 and gave the company a "neutral" rating in a report on Wednesday, May 13th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, USA Compression Partners presently has an average rating of "Hold" and a consensus target price of $29.25.

USA Compression Partners Stock Up 1.4%

Shares of USAC opened at $26.80 on Wednesday. The stock has a market capitalization of $3.88 billion, a PE ratio of 25.28 and a beta of 0.22. USA Compression Partners has a 1 year low of $21.85 and a 1 year high of $30.55. The company has a debt-to-equity ratio of 10.25, a quick ratio of 0.68 and a current ratio of 1.35. The company's 50-day simple moving average is $26.25 and its 200-day simple moving average is $27.15.

USA Compression Partners (NYSE:USAC - Get Free Report) last announced its earnings results on Tuesday, August 4th. The oil and gas company reported $0.31 EPS for the quarter, beating analysts' consensus estimates of $0.28 by $0.03. The company had revenue of $342.15 million during the quarter, compared to analysts' expectations of $340.49 million. USA Compression Partners had a return on equity of 179.77% and a net margin of 12.43%.

USA Compression Partners Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Monday, July 27th were paid a dividend of $0.525 per share. The ex-dividend date was Monday, July 27th. This represents a $2.10 annualized dividend and a dividend yield of 7.8%. USA Compression Partners's dividend payout ratio is 198.11%.

Insider Transactions at USA Compression Partners

In related news, Director Bradford D. Whitehurst acquired 6,000 shares of USA Compression Partners stock in a transaction on Friday, August 21st. The stock was purchased at an average cost of $26.10 per share, with a total value of $156,600.00. Following the purchase, the director directly owned 43,616 shares in the company, valued at approximately $1,138,377.60. The trade was a 15.95% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. D.A. Davidson & CO. increased its holdings in USA Compression Partners by 1.6% during the 1st quarter. D.A. Davidson & CO. now owns 28,790 shares of the oil and gas company's stock valued at $781,000 after acquiring an additional 447 shares in the last quarter. Royal Bank of Canada increased its stake in shares of USA Compression Partners by 0.4% during the 4th quarter. Royal Bank of Canada now owns 127,146 shares of the oil and gas company's stock worth $2,924,000 after purchasing an additional 521 shares in the last quarter. Kestra Advisory Services LLC raised its position in shares of USA Compression Partners by 1.2% during the 1st quarter. Kestra Advisory Services LLC now owns 46,340 shares of the oil and gas company's stock worth $1,257,000 after purchasing an additional 540 shares during the last quarter. Cetera Investment Advisers lifted its stake in USA Compression Partners by 2.4% in the 1st quarter. Cetera Investment Advisers now owns 28,636 shares of the oil and gas company's stock valued at $777,000 after buying an additional 674 shares in the last quarter. Finally, Commonwealth Equity Services LLC grew its holdings in USA Compression Partners by 5.7% during the 4th quarter. Commonwealth Equity Services LLC now owns 13,482 shares of the oil and gas company's stock valued at $310,000 after buying an additional 724 shares during the last quarter. Institutional investors and hedge funds own 47.77% of the company's stock.

Key USA Compression Partners News

Here are the key news stories impacting USA Compression Partners this week:

• Positive Sentiment: Director Bradford Whitehurst purchased a combined 10,000 USAC shares for approximately $262,200 at average prices of $26.10 and $26.40. The purchases increased his direct holdings substantially and may signal confidence in the partnership’s valuation and operating outlook. Insider Buying: USA Compression Partners Director Purchases Shares
• Positive Sentiment: USAC’s latest quarterly results offer a favorable earnings backdrop: the company reported $0.31 in EPS, above the $0.28 consensus estimate, while revenue of $342.15 million also exceeded expectations of $340.49 million.
• Neutral Sentiment: The partnership recently declared a quarterly distribution of $0.525 per share, equivalent to $2.10 annually and a yield near 7.9%. However, the payout ratio is approximately 198%, highlighting the importance of cash flow and financial stability for income-focused investors.
• Neutral Sentiment: Analyst opinion remains mixed. The consensus rating is “Hold,” with an average price target of $29.25, while RBC, Mizuho and Citigroup maintain neutral ratings and have price targets ranging from $28 to $30.
• Negative Sentiment: Zacks Research reduced its EPS forecasts across several periods, including Q3 2026 to $0.19 from $0.25, Q4 2026 to $0.23 from $0.28, FY2026 to $1.00 from $1.04, FY2027 to $1.12 from $1.22, and FY2028 to $1.36 from $1.46. The firm also lowered estimates for 2027 quarterly earnings and assigned USAC a “Strong Sell” rating. These revisions suggest expectations for slower earnings growth and are the main negative catalyst for the shares.

About USA Compression Partners

USA Compression Partners NYSE: USAC is a Houston-based master limited partnership specializing in natural gas compression services for oil and gas producers. The company offers a full suite of midstream compression solutions designed to enhance production flow and optimize field operations. Its core activities include the design, engineering, fabrication, installation, operation and maintenance of natural gas compression equipment onshore across key U.S. basins.

USA Compression's product and service offerings encompass new equipment deployment, aftermarket parts and component sales, field service support, and instrumentation and control systems.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source