USA Compression to Report Q4 Earnings: What's in Store for the Stock?

USA Compression Partners USAC is set to release fourth-quarter results on Feb. 17. The Zacks Consensus Estimate for earnings is pegged at 28 cents per share and that for revenues is pinned at $251.58 million.

Let us delve into the factors that are likely to have influenced this oil and gas equipment and service provider’s performance in the to-be-reported quarter. But first, it is worth taking a look at USAC’s performance in the last reported quarter.

Highlights of USAC’s Q3 Earnings & Surprise History

In the last reported quarter, this Austin, TX-based energy natural gas compression services provider’s earnings beat the consensus mark, thanks to a year-over-year increase in average revenue per horsepower. Adjusted net profit of 26 cents per common unit beat the Zacks Consensus Estimate of 22 cents. Revenues of $250.3 million surpassed the Zacks Consensus Estimate of $247 million. USAC’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in the other two, delivering an average negative surprise of 6.5%.

This is depicted in the graph below:

USA Compression Partners, LP Price and EPS Surprise

USA Compression Partners, LP price-eps-surprise | USA Compression Partners, LP Quote

USAC’s Trend in Estimate Revision

The Zacks Consensus Estimate for fourth-quarter 2025 earnings has not witnessed any movement in the past seven days. The estimated figure indicates a 55.56% year-over-year increase. The Zacks Consensus Estimate for revenues indicates a 2.31% increase from the year-ago period’s level.

USAC’s Q4 Performance: Factors to Consider

USAC’s revenues are likely to have improved in the quarter to be reported.  The company earns revenues by providing natural gas compression services to oil and gas producers. USAC owns and operates a fleet of compression equipment, which it leases to producers. In exchange, the producers pay USAC a fee for equipment usage, as well as for maintenance and operational costs.

The Zacks Consensus Estimate for fourth-quarter revenues implies an increase from the year-ago quarter’s level. This can be attributed to the robust performance of the contract operations. Based on our model estimates, the contract operations segment is likely to register 5.2% growth from the year-ago quarter’s level. USAC’s average revenue per revenue-generating horsepower per month is expected increase 5.1% from the year-ago quarter’s figure.

On a somewhat bearish note, the rise in USAC’s costs might have dented the company’s to-be-reported bottom line. The company’s fourth-quarter total operations costs are anticipated to be $79.9 million, up 2.3% from the year-ago quarter’s level.  Due to the ongoing inflationary pressures, the upward trend in costs is expected to have persisted in the fourth quarter.

What Does Our Model Predict for USAC?

The proven Zacks model does not conclusively predict an earnings beat for USA Compression this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.

USAC’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -7.14%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank of USAC:  USAC currently carries a Zacks Rank #2.

Stocks With the Favorable Combination

Here are some firms from the other space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

Reliance, Inc. RS has an Earnings ESP of +2.59% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on Feb. 18. RS’ earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and beat in one, delivering an average negative surprise of 5.80%.   You can see the complete list of today’s Zacks #1 Rank stocks here.

Reliance, headquartered in Los Angeles, is a prominent provider of metals services, specializing in material management and processing. The company offers a diverse range of more than 100,000 metal products to over 125,000 clients across multiple industries. With more than 300 facilities, Reliance holds the title of the largest metal service center in North America in terms of revenues.

Transocean RIG has an Earnings ESP of +5.88% and a Zacks Rank #3 at present.  The firm is scheduled to release earnings on Feb. 19. RIG’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, delivering an average negative surprise of 208.33%.

Transocean is a leading offshore drilling contractor that provides advanced drilling services to the oil and gas industry. With a fleet of high-specification rigs, the company specializes in deepwater and ultra-deepwater drilling operations worldwide.

Western Union WU has an Earnings ESP of +1.51% and a Zacks Rank #3 at present.  The firm is scheduled to release earnings on Feb. 20. WU’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in the other two, delivering an average surprise of 0.62%.

Western Union is a global leader in cross-border money transfer services, enabling individuals and businesses to send and receive funds securely across more than 200 countries and territories. The company offers a range of financial services, including digital payments, money transfers and bill payments.

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This article originally published on Zacks Investment Research (zacks.com).

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