Sidoti Weighs in on Archrock's Q3 Earnings (NYSE:AROC)

Key Points

• Sidoti raised its Q3 2026 EPS estimate for Archrock to $0.50 from $0.48 and also lifted its FY2026 and FY2027 outlooks, signaling growing confidence in the company’s longer-term earnings trajectory.
• Archrock’s latest quarterly results missed expectations, with EPS of $0.42 versus the $0.47 consensus and revenue of $373.77 million versus $378.36 million expected, even though revenue still grew 7.7% year over year.
• Wall Street sentiment remains broadly positive, with multiple firms raising price targets and the stock carrying an average “Buy” rating and a consensus price target of $40.43, above its recent trading level near $36.91.

Archrock, Inc. (NYSE:AROC - Free Report) - Sidoti raised their Q3 2026 earnings estimates for shares of Archrock in a report issued on Thursday, May 7th. Sidoti analyst S. Ferazani now forecasts that the energy company will earn $0.50 per share for the quarter, up from their prior estimate of $0.48. The consensus estimate for Archrock's current full-year earnings is $1.95 per share. Sidoti also issued estimates for Archrock's FY2026 earnings at $1.89 EPS and FY2027 earnings at $2.26 EPS.

A number of other equities research analysts also recently commented on the stock. Wells Fargo & Company increased their price objective on shares of Archrock from $40.00 to $43.00 and gave the company an "overweight" rating in a research report on Thursday. Raymond James Financial reissued an "outperform" rating and issued a $46.00 price objective on shares of Archrock in a research report on Thursday. Citigroup increased their price objective on shares of Archrock from $31.00 to $40.00 and gave the company a "buy" rating in a research report on Monday, March 2nd. Stifel Nicolaus set a $41.00 price objective on shares of Archrock in a research report on Thursday. Finally, Wall Street Zen downgraded shares of Archrock from a "buy" rating to a "hold" rating in a research report on Sunday, March 8th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Buy" and a consensus price target of $40.43.

Archrock Trading Down 0.1%

Shares of NYSE:AROC opened at $36.91 on Monday. Archrock has a 52 week low of $21.17 and a 52 week high of $40.12. The company's 50 day moving average is $36.17 and its two-hundred day moving average is $30.05. The company has a current ratio of 1.41, a quick ratio of 0.91 and a debt-to-equity ratio of 1.57. The company has a market cap of $6.47 billion, a PE ratio of 20.06, a P/E/G ratio of 1.58 and a beta of 0.94.

Archrock (NYSE:AROC - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The energy company reported $0.42 EPS for the quarter, missing analysts' consensus estimates of $0.47 by ($0.05). Archrock had a net margin of 21.45% and a return on equity of 22.89%. The firm had revenue of $373.77 million during the quarter, compared to analysts' expectations of $378.36 million. Archrock's revenue was up 7.7% on a year-over-year basis.

Archrock Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, May 19th. Investors of record on Tuesday, May 12th will be given a $0.22 dividend. This represents a $0.88 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Tuesday, May 12th. Archrock's dividend payout ratio (DPR) is 47.83%.

Insiders Place Their Bets

In related news, CFO Doug S. Aron sold 98,050 shares of the stock in a transaction on Monday, March 30th. The shares were sold at an average price of $34.76, for a total value of $3,408,218.00. Following the transaction, the chief financial officer directly owned 484,337 shares of the company's stock, valued at $16,835,554.12. This trade represents a 16.84% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Donna A. Henderson sold 10,413 shares of the stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $36.74, for a total transaction of $382,573.62. Following the completion of the transaction, the chief accounting officer directly owned 27,757 shares in the company, valued at $1,019,792.18. This trade represents a 27.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 179,963 shares of company stock worth $6,336,907 over the last ninety days. Insiders own 2.90% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of AROC. Vaughan Nelson Investment Management L.P. purchased a new position in Archrock during the 4th quarter worth $61,144,000. Neuberger Berman Group LLC grew its position in Archrock by 9,756.7% during the 4th quarter. Neuberger Berman Group LLC now owns 1,293,002 shares of the energy company's stock worth $33,644,000 after purchasing an additional 1,279,884 shares during the last quarter. Stephens Investment Management Group LLC purchased a new position in Archrock during the 4th quarter worth $32,904,000. HITE Hedge Asset Management LLC purchased a new position in Archrock during the 3rd quarter worth $19,603,000. Finally, Norges Bank purchased a new position in Archrock during the 4th quarter worth $18,721,000. 95.45% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Archrock

Here are the key news stories impacting Archrock this week:

• Positive Sentiment: Wells Fargo raised its price target on Archrock to $43 from $40 and kept an overweight rating, implying meaningful upside from current levels.
• Positive Sentiment: Sidoti lifted several forward earnings estimates for Archrock, including Q1 2027, Q2 2027, Q3 2027, and Q4 2027, signaling confidence in the company’s longer-term earnings trajectory.
• Positive Sentiment: Coverage pieces highlighting Archrock as a bullish energy name may be reinforcing investor optimism around the stock. Analysts Are Bullish on These Energy Stocks: Devon Energy (DVN), Archrock (AROC)
• Neutral Sentiment: Investors are also watching Archrock ahead of its ex-dividend date, which can support short-term interest but does not change the company’s underlying fundamentals. Be Sure To Check Out Archrock, Inc. NYSE: AROC Before It Goes Ex-Dividend
• Neutral Sentiment: Archrock’s Q1 earnings call and transcript drew attention to management’s growth and capital discipline, but the call also followed a quarter where results came in below expectations. Archrock Earnings Call Highlights Strong Growth, Discipline
• Negative Sentiment: Archrock’s Q1 2026 earnings and revenue missed estimates, with higher SG&A expenses offsetting strong contract operations and rising compression demand. Archrock Q1 Earnings & Revenues Miss Estimates on Higher SG&A Expenses
• Negative Sentiment: Sidoti trimmed its Q2 2026 EPS estimate slightly, which suggests near-term margin pressure may still be a concern despite the more optimistic longer-term revisions.

Archrock Company Profile

Archrock, Inc is a Houston‐based provider of natural gas compression services and equipment to the oil and gas industry in North America. Founded in 2004, the company supplies both short‐term rentals and long‐term contracts for compression solutions, serving upstream and midstream producers. Archrock's offerings include engineered compression systems, aftermarket parts, maintenance and field services designed to optimize wellhead and pipeline operations.

The company's core business activities focus on the design, manufacture, rental and sale of gas compression equipment.

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