NYSE$AROC

Archrock Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported results for the second quarter of 2021.

Archrock reported second-quarter revenue of $195.6 million and net income of $8.8 million. The company's contract operations segment saw revenue of $163.9 million, while the aftermarket services segment generated $31.8 million. Archrock is tightening its 2021 Adjusted EBITDA guidance range to $340 million to $355 million.

  • Second quarter revenue was $195.6 million, compared to $220.3 million in the second quarter of 2020.
  • Net income for the second quarter was $8.8 million, compared to a net loss of $30.4 million in the second quarter of 2020.
  • Adjusted EBITDA for the second quarter was $87.0 million, compared to $100.5 million in the second quarter of 2020.
  • Net cash provided by operating activities for the second quarter was $49.1 million and free cash flow after dividend was $9.3 million.

Headline financials

Total Revenue

$196M

Previous: $220M-11.2%
EPS (adj)

$0.06

Previous: $0.28-78.6%
Leverage Ratio

4.25

Previous: 4.1+3.7%
Free Cash Flow

$8.75M

Previous: -$30.4M+128.8%
Net Income

$8.75M

Previous: -$30.4M+128.8%
Operating Income

-$212M

Previous: -$283M+24.9%
Gross Profit

-$88.9M

Previous: -$92.1M+3.5%
Cash & Equivalents

$3.31M

Previous: $2.21M+50.2%
Total Assets

$2.7B

Previous: $2.93B-7.9%
Stock-Based Comp

$3.18M

Previous: $2.77M+14.6%

Revenue & EPS history

Archrock · Revenue · Quarterly

$196M

Q2 2021-11.2%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Archrock · $196M total across 2 segments · Q2 2021

  • Contract Operations
    $164M-12.8%
  • Aftermarket Services
    $31.8M-1.9%

Forward guidance

Archrock is tightening its 2021 Adjusted EBITDA guidance range to $340 million to $355 million.

Tailwinds

  • Captured highest level of horsepower bookings since Q2 2019.
  • Initial budget discussions with customers indicate that this booking momentum will continue building into next year.
  • Customers are entering growth mode.
  • Positive long-term fundamentals for the compression business remain in place.
  • Modernized fleet, invested in technology and enhanced focus on ESG performance and disclosure.

Headwinds

  • Production-oriented infrastructure business to lag.
  • Participation in the upcycle to materialize during 2022.
  • Second quarter revenue was lower compared to the same period last year.
  • Adjusted EBITDA was lower compared to the same period last year.
  • Utilization at the end of the second quarter of 2021 was lower compared to the end of the second quarter of 2020.

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 2021

Historical avgQ2 2021

-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

Earnings price reactions
QuarterReport dateReaction (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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