Benzinga | Nov 2, 2020 10:09AM EST

Preview: Archrock's Earnings

Archrock (NYSE: AROC) will be releasing its next round of earnings this Tuesday, November 03. For all of the relevant information, here is your guide for Tuesday's Q3 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts expect Archrock earnings of $0.1 per share. Revenue will likely be around $209.53 million, according to the consensus estimate. In the same quarter last year, Archrock reported earnings per share of $0.14 on sales of $244.95 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 28.57% decrease in the company's earnings. Revenue would be down 14.46% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.12 0.14 0.16 0.15EPS Actual 0.28 0.27 0.30 0.14Revenue Estimate 236.82 M 239.60 M 252.25 M 251.90 MRevenue Actual 220.32 M 249.70 M 245.99 M 244.95 M

Stock Performance

Shares of Archrock were trading at $5.93 as of October 29. Over the last 52-week period, shares are down 40.31%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Archrock is scheduled to hold the call at 11:00:00 ET and can be accessed here.