It's been a good week for Archrock, Inc. (NYSE:AROC) shareholders, because the company has just released its latest first-quarter results, and the shares gained 2.2% to US$24.36. The result was positive overall - although revenues of US$347m were in line with what the analysts predicted, Archrock surprised by delivering a statutory profit of US$0.40 per share, modestly greater than expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.NYSE:AROC Earnings and Revenue Growth May 9th 2025

Taking into account the latest results, the current consensus from Archrock's four analysts is for revenues of US$1.47b in 2025. This would reflect a solid 19% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 40% to US$1.58. Before this earnings report, the analysts had been forecasting revenues of US$1.46b and earnings per share (EPS) of US$1.60 in 2025. 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.

View our latest analysis for Archrock

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$30.88. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Archrock, with the most bullish analyst valuing it at US$32.00 and the most bearish at US$29.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Archrock's growth to accelerate, with the forecast 26% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Archrock is expected to grow much faster than its industry.

Story Continues

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$30.88, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Archrock going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the  2 warning signs  we've spotted with Archrock (including 1 which makes us a bit uncomfortable) .

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

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

View Comments