Archrock, Inc. Just Recorded A 6.7% EPS Beat: Here's What Analysts Are Forecasting Next

It's been a sad week for Archrock, Inc. (NYSE:AROC), who've watched their investment drop 16% to US$26.60 in the week since the company reported its third-quarter result. Archrock missed revenue estimates by 4.0%, coming in atUS$371m, although statutory earnings per share (EPS) of US$0.48 beat expectations, coming in 6.7% ahead of analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Archrock after the latest results.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

After the latest results, the five analysts covering Archrock are now predicting revenues of US$1.64b in 2027. If met, this would reflect a decent 9.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 6.8% to US$2.06. Before this earnings report, the analysts had been forecasting revenues of US$1.64b and earnings per share (EPS) of US$2.05 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Archrock

There were no changes to revenue or earnings estimates or the price target of US$42.38, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Archrock at US$46.00 per share, while the most bearish prices it at US$40.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Archrock is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Archrock's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Archrock's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 7.6% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.2% annually. Factoring in the forecast slowdown in growth, it looks like Archrock is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Archrock going out to 2028, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Archrock that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.