NYSE$AROC

Archrock Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported excellent operational and financial performance, setting new records for utilization, monthly revenue per horsepower and quarterly Adjusted EBITDA.

Archrock reported strong Q3 2023 results, with revenue increasing to $253.4 million and net income reaching $30.9 million. The company achieved a record period-end utilization of 96% and expects to deliver close to the high-end of its previously issued 2023 Adjusted EBITDA guidance.

  • Revenue for Q3 2023 was $253.4 million, compared to $213.7 million in Q3 2022.
  • Net income for Q3 2023 was $30.9 million, compared to $15.4 million in Q3 2022.
  • Adjusted EBITDA for Q3 2023 was $120.2 million, compared to $91.9 million in Q3 2022.
  • Achieved record period-end utilization of 96% for the third quarter of 2023, compared to 89% in the third quarter of 2022.

Headline financials

Total Revenue

$253M

Previous: $214M+18.6%
EPS (adj)

$0.20

Previous: $0.10+100.0%
Leverage Ratio

3.8

No prior period
Free Cash Flow

$30.9M

Previous: $15.4M+100.8%
Net Income

$30.9M

Previous: $15.4M+100.8%
Operating Income

-$138M

Previous: -$126M-9.6%
Gross Profit

-$112M

Previous: -$108M-4.1%
Cash & Equivalents

$482K

Previous: $2.04M-76.4%
Total Assets

$2.67B

Previous: $2.61B+2.6%
Stock-Based Comp

$3.19M

Previous: $3M+6.4%

Revenue & EPS history

Archrock · Revenue · Quarterly

$253M

Q3 2023+18.6%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Archrock · $253M total across 2 segments · Q3 2023

  • Contract Operations
    $208M+21.8%
  • Aftermarket Services
    $45.8M+6.1%

Forward guidance

Archrock expects enhanced profitability, improved financial returns and positive free cash flow for 2024. The company remains committed to its differentiated capital allocation framework, which includes increasing shareholder returns through annual dividend growth of 5% and reducing its leverage ratio further to a range of 3.0 to 3.5 times.

Tailwinds

  • Enhanced profitability
  • Improved financial returns
  • Positive free cash flow
  • Increasing shareholder returns through annual dividend growth of 5%
  • Reducing leverage ratio further to a range of 3.0 to 3.5 times

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 Q3 2023

Historical avgQ3 2023

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro