USA Compression Partners Earnings: Here’s Why the Stock is Down Now

USA Compression Partners LP (NYSE:USAC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.88%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

USA Compression Partners LP Earnings Cheat Sheet

Revenue: Was the same at $32.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: USA Compression Partners LP reported adjusted EPS income of $0.07 per share. By that measure, the company beat the mean analyst estimate of $0. It beat the average revenue estimate of $31.09 million.

Quoting Management: “We are very pleased to report record levels of revenue and Adjusted EBITDA for the first quarter of 2013,” said Eric D. Long, P.E., USA Compression President and Chief Executive Officer. “The demand for our services remains strong and higher levels of gross operating margin, excluding retail services, for the first quarter of 2013, continue to improve our financial performance. We have customer contracts for all of the new compression units ordered and scheduled for delivery primarily in the first quarter of 2013, comprised of 35,880 horsepower, and 51% of the new compression units ordered and scheduled for delivery primarily in the second quarter of 2013, comprised of 50,915 horsepower.”

Key Stats (on next page)…

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from $0 to a profit $0.09. For the current year, the average estimate is $0, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)