As you might know, Archrock, Inc. (NYSE:AROC) just kicked off its latest first-quarter results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 3.1% to hit US$268m. Archrock reported statutory earnings per share (EPS) US$0.26, which was a notable 16% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Archrock after the latest results.

View our latest analysis for Archrock

Taking into account the latest results, the current consensus from Archrock's two analysts is for revenues of US$1.09b in 2024. This would reflect a reasonable 6.1% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 29% to US$1.05. Before this earnings report, the analysts had been forecasting revenues of US$1.08b and earnings per share (EPS) of US$1.00 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at US$21.75, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Archrock is forecast to grow faster in the future than it has in the past, with revenues expected to display 8.3% annualised growth until the end of 2024. If achieved, this would be a much better result than the 0.5% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.6% annually. So it looks like Archrock is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Archrock following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$21.75, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Archrock going out as far as 2025, and you can see them free on our platform here.

Even so, be aware that Archrock is showing 2 warning signs in our investment analysis , and 1 of those is concerning...

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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.