Archrock Inc (NYSE:AROC) stock rose 2.25% (As on November 12, 11:22:35 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 24. For the third quarter of 2024, contract operations segment revenue totaled $245.4 million, an increase of 18% compared to $207.6 million in the third quarter of 2023. Adjusted gross margin was $165.6 million for the third quarter of 2024, up 25% from $132.3 million in the third quarter of 2023. Adjusted gross margin percentage was 67% for the third quarter of 2024, compared to 64% in the third quarter of 2023. At the end of the third quarter of 2024, total operating horsepower was 4.2 million, up from 3.6 million in the third quarter of 2023, primarily reflecting the acquisition of TOPS. Horsepower utilization at period end remained at 95%. For the third quarter of 2024, aftermarket services segment revenue totaled $46.7 million, compared to $45.8 million in the third quarter of 2023. Adjusted gross margin was $12.3 million for the third quarter of 2024, compared to $9.1 million in the third quarter of 2023. Adjusted gross margin percentage was 26% for the third quarter of 2024, compared to 20% for the third quarter of 2023.
AROC in the third quarter of FY 24 has reported the adjusted earnings per share of 28 cents, which met the analysts’ estimates for the adjusted earnings per share of 28 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 15.3 percent to $292.2 million in the third quarter of FY 24, beating the analysts’ estimates for revenue of $286.19 million.
Additionally, Long-term debt was $2.2 billion at September 30, 2024, which reflects the offering of $700 million aggregate principal amount of 6.625% senior notes due 2032, as well as the tender of $200 million aggregate principal amount of 6.875% senior notes due 2027 (of the $500 million aggregate principal amount outstanding of the notes). Our available liquidity at September 30, 2024 totaled $650 million. The company has declared a quarterly dividend of $0.175 per share of common stock, or $0.70 per share on an annualized basis. Dividend coverage in the third quarter of 2024 was 3.0x. During the quarter ended September 30, 2024, Archrock repurchased 649,854 common shares at an average price of $18.63 per share, for an aggregate of approximately $12.1 million. Approximately $37.9 million remains available for future common share repurchases under Archrock’s current share repurchase program.
Archrock raises FY24 adjusted EBITDA view to $575K-$585K from $510M-$540M.