Archrock (NYSE:AROC) Shares Gap Up After Strong Earnings

Shares of Archrock, Inc. (NYSE:AROC - Get Free Report) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $19.19, but opened at $20.39. Archrock shares last traded at $19.48, with a volume of 190,967 shares trading hands.

The energy company reported $0.26 EPS for the quarter, topping the consensus estimate of $0.22 by $0.04. The firm had revenue of $268.49 million for the quarter, compared to the consensus estimate of $260.51 million. Archrock had a net margin of 10.60% and a return on equity of 12.63%. The business's quarterly revenue was up 3.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.10 earnings per share.

Archrock Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, May 14th. Shareholders of record on Tuesday, May 7th will be given a dividend of $0.165 per share. This represents a $0.66 annualized dividend and a yield of 3.39%. The ex-dividend date of this dividend is Monday, May 6th. Archrock's payout ratio is 98.51%.

Analyst Ratings Changes

Separately, Royal Bank of Canada raised their price target on Archrock from $20.00 to $21.00 and gave the company an "outperform" rating in a research report on Thursday, March 28th. One investment analyst has rated the stock with a hold rating and three have given a buy rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $17.67.

Institutional Investors Weigh In On Archrock

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Janney Montgomery Scott LLC grew its position in shares of Archrock by 9.0% in the first quarter. Janney Montgomery Scott LLC now owns 13,065 shares of the energy company's stock valued at $257,000 after purchasing an additional 1,079 shares during the last quarter. BNP Paribas Financial Markets lifted its stake in shares of Archrock by 77.2% in the first quarter. BNP Paribas Financial Markets now owns 69,992 shares of the energy company's stock valued at $1,377,000 after buying an additional 30,493 shares during the period. Mirae Asset Global Investments Co. Ltd. lifted its stake in shares of Archrock by 18.2% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 1,270,818 shares of the energy company's stock valued at $24,997,000 after buying an additional 195,549 shares during the period. Allspring Global Investments Holdings LLC bought a new stake in shares of Archrock in the first quarter valued at about $43,000. Finally, Fifth Third Bancorp lifted its stake in shares of Archrock by 3.8% in the first quarter. Fifth Third Bancorp now owns 187,708 shares of the energy company's stock valued at $3,692,000 after buying an additional 6,876 shares during the period. 95.45% of the stock is owned by institutional investors and hedge funds.

Archrock Trading Up 1.6 %

The company has a debt-to-equity ratio of 1.82, a current ratio of 1.40 and a quick ratio of 0.86. The company's 50 day moving average is $19.32 and its two-hundred day moving average is $16.44. The firm has a market cap of $3.05 billion, a P/E ratio of 29.09, a PEG ratio of 2.90 and a beta of 1.59.

Archrock Company Profile

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.