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AROC: Expanded Buybacks And Higher 2025 Earnings Guidance Will Support Upside

AROC: Expanded Buybacks And Raised Guidance Will Drive Future Upside

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AROC
AnalystConsensusTarget
Not Invested
Published 04 Sep 2024

Update shared on 16 Dec 2025

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3.2%
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-2.9%

Analysts have modestly increased their price target on Archrock to approximately $31.56 per share, citing slightly lower discount rate assumptions and a marginally reduced future price to earnings multiple. Together, these factors refine but do not materially alter their long term valuation outlook.

What's in the News

  • Archrock, Inc. raised its full year 2025 earnings guidance, projecting net income between $265.2 million and $280.2 million, signaling stronger than previously expected profitability (Company guidance filing).
  • The company expanded its equity repurchase authorization by $100 million on October 28, 2025, lifting the total buyback capacity to approximately $210.09 million and extending the program through December 31, 2026 (Company announcement).
  • From July 1, 2025 to October 29, 2025, Archrock repurchased 1,222,846 shares for $28.47 million, bringing total buybacks under the April 28, 2023 program to 3,942,161 shares and $79.7 million deployed (Company buyback update).

Valuation Changes

  • Fair Value: Unchanged at approximately $31.56 per share, indicating a stable intrinsic value estimate.
  • Discount Rate: Fallen slightly from about 8.06 percent to 8.00 percent, reflecting a modestly lower required return.
  • Revenue Growth: Effectively unchanged at around 7.13 percent, suggesting no material shift in top line growth expectations.
  • Net Profit Margin: Stable at roughly 21.54 percent, with only immaterial rounding differences in the updated margin assumption.
  • Future P/E: Reduced slightly from about 18.28x to 18.25x, implying a marginally lower valuation multiple applied to forward earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.