NYSE$AROC
Archrock Inc · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Reported a net loss due to non-cash long-lived asset impairment, debt extinguishment loss and restructuring costs, but improved contract operations gross margin percentage through cost management.
Archrock reported a revenue of $220.3 million and a net loss of $30.4 million for Q2 2020. Despite market challenges, the company improved its contract operations gross margin percentage through aggressive cost management. They also saw signs of market stabilization entering the third quarter.
- Revenue for the second quarter of 2020 was $220.3 million compared to $238.4 million in the second quarter of 2019.
- Net loss for the second quarter of 2020 was $30.4 million compared to net income of $11.4 million in the second quarter of 2019.
- Adjusted EBITDA for the second quarter of 2020 was $100.5 million compared to $100.7 million in the second quarter of 2019.
- Archrock’s leverage ratio was 4.1x compared to 4.4x as of June 30, 2019.
Headline financials
Revenue & EPS history
Archrock · Revenue · Quarterly
$220M
Revenue by segment
Archrock · $220M total across 2 segments · Q2 2020
- Contract Operations$188M+0.9%85.3%
- Aftermarket Services$32.4M-37.8%14.7%
Forward guidance
Archrock is providing updated 2020 annual guidance. The guidance includes estimated net loss between $(77,000) and $(37,000), adjusted EBITDA between 380,000 and 420,000, contract operations revenue between $735,000 and $745,000, and aftermarket services revenue between $135,000 and $145,000.
Tailwinds
- Expect to continue to generate free cash flow as largely funded 2020 capital needs.
- Not planning large new equipment capital expenditures in 2021
- Expanding free cash flow generation will facilitate further debt reduction
- Continuing return of cash to shareholders
- Substantial available liquidity and no near-term debt maturities
Headwinds
- Net loss annual guidance includes $99.8 million of goodwill impairment
- Net loss annual guidance includes $61.4 million of long-lived asset impairments
- Net loss annual guidance includes $4.1 million of restructuring charges
- Net loss annual guidance includes $4.0 million of debt extinguishment loss as of June 30, 2020
- Does not include the impact of any such future costs, because due to their nature, they cannot be accurately forecasted.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2020
-1.5%
Avg return
Earnings day
+1.0%
Avg return
5 days after
+0.0%
Avg return
30 days after
46%
31 / 68 earnings
Positive
+16.6%
Q2 2016
Best reaction
-37.9%
Q1 2016
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -1.8% | -8.0% | -14.6% | |
| Q4 2025 | +3.7% | +9.1% | +5.4% | |
| Q3 2025 | -2.4% | -0.0% | -4.4% | |
| Q1 2025 | -2.6% | +0.6% | +2.5% | |
| Q4 2024 | +2.3% | +5.1% | +2.9% | |
| Q3 2024 | +7.1% | +2.7% | +17.9% | |
| Q2 2024 | -4.2% | -13.6% | -7.5% | |
| Q1 2024 | -3.1% | +0.4% | -2.2% | |
| Q4 2023 | +6.5% | +6.0% | +14.1% | |
| Q3 2023 | +8.8% | +10.1% | +14.6% | |
| Q2 2023 | +10.9% | +11.5% | +10.6% | |
| Q1 2023 | -8.9% | -4.7% | -10.3% | |
| Q4 2022 | +2.4% | +14.6% | -3.9% | |
| Q3 2022 | +5.3% | +12.1% | +17.2% | |
| Q2 2022 | -1.9% | -6.8% | -12.7% | |
| Q1 2022 | -3.9% | +1.0% | +13.5% | |
| Q4 2021 | -0.5% | -1.9% | +7.3% | |
| Q3 2021 | +2.7% | +6.5% | -11.6% | |
| Q2 2021 | +1.3% | +0.0% | -7.1% | |
| Q1 2021 | -4.4% | -3.8% | -5.8% | |
| Q4 2020 | -1.6% | +1.6% | -6.8% | |
| Q3 2020 | +11.3% | +7.6% | +42.0% | |
| Q2 2020 | -6.1% | +0.1% | -5.9% | |
| Q1 2020 | -2.9% | +6.9% | +45.4% | |
| Q4 2019 | +4.6% | -8.8% | -57.2% | |
| Q3 2019 | +2.2% | -1.4% | -11.4% | |
| Q2 2019 | +3.0% | -3.6% | -11.6% | |
| Q1 2019 | -4.4% | -6.6% | -12.7% | |
| Q4 2018 | +10.6% | +5.5% | +5.8% | |
| Q3 2018 | +1.4% | +6.2% | -2.0% | |
| Q2 2018 | -2.2% | -1.1% | -5.2% | |
| Q1 2018 | -3.7% | -0.5% | +8.8% | |
| Q4 2017 | +14.7% | +14.1% | +2.8% | |
| Q3 2017 | -8.8% | -10.1% | -16.8% | |
| Q2 2017 | -4.1% | -5.9% | -6.8% | |
| Q1 2017 | -6.8% | -5.5% | -10.2% | |
| Q4 2016 | -15.8% | -13.9% | -23.7% | |
| Q3 2016 | -3.4% | -5.6% | +12.1% | |
| Q2 2016 | +16.6% | +20.7% | +28.0% | |
| Q1 2016 | -37.9% | — | — | |
| Q4 2015 | +14.0% | — | — | |
| Q3 2015 | -5.8% | — | — | |
| Q2 2015 | +3.8% | — | — | |
| Q1 2015 | +0.0% | — | — | |
| Q4 2014 | +0.8% | — | — | |
| Q3 2014 | -10.6% | — | — | |
| Q2 2014 | +3.5% | — | — | |
| Q1 2014 | +0.2% | — | — | |
| Q4 2013 | +4.1% | — | — | |
| Q3 2013 | +1.1% | — | — | |
| Q2 2013 | -11.3% | — | — | |
| Q1 2013 | -4.4% | — | — | |
| Q4 2012 | +7.4% | — | — | |
| Q3 2012 | +5.5% | — | — | |
| Q2 2012 | +6.1% | — | — | |
| Q1 2012 | +2.8% | — | — | |
| Q4 2011 | +3.1% | — | — | |
| Q3 2011 | +1.4% | — | — | |
| Q2 2011 | -29.6% | — | — | |
| Q1 2010 | -3.1% | — | — | |
| Q1 2011 | -1.0% | — | — | |
| Q4 2010 | -3.5% | — | — | |
| Q4 2008 | -3.5% | — | — | |
| Q3 2009 | -13.7% | — | — | |
| Q3 2010 | -13.7% | — | — | |
| Q4 2009 | -12.3% | — | — | |
| Q2 2009 | -12.3% | — | — | |
| Q2 2010 | -12.3% | — | — |
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