USA Compression Partners (NYSE:USAC) Announces Earnings Results, Misses Expectations By $0.08 EPS

USA Compression Partners (NYSE:USAC) issued its quarterly earnings data on Tuesday. The oil and gas company reported $0.27 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.08), FiscalAI reports. USA Compression Partners had a negative return on equity of 87.34% and a net margin of 11.15%.The business had revenue of $331.28 million during the quarter, compared to the consensus estimate of $308.35 million.

Here are the key takeaways from USA Compression Partners’ conference call:

• J‑W Power integration completed and operations combined under a new ERP, with management targeting $10–$20M of annual run‑rate synergies by year‑end 2027 and >90% of 2026 new horsepower already contracted.
• Management is proactively securing supply as engine lead times have stretched to ~150 weeks, placing multi‑year engine orders and using J‑W’s manufacturing to buy engines with optionality to deploy internally or resell, which they say limits downside.
• Company reported record average pricing of $22.73/HP (up 5% sequential, 8% YoY), adjusted gross margin of 64.4%, net income of $38.3M and strengthened DCF/leverage metrics while maintaining full‑year guidance ranges.
• Management acknowledges J‑W’s operations have a lower gross margin profile (manufacturing/AMS represented ~10% of legacy EBITDA), average utilization dipped after the acquisition, and leverage may temporarily tick higher in Q2 as new horsepower is delivered.
• Capital plan calls for continued growth (~100k–125k HP/year), expansion capex focused on new units with maintenance normalization, and management says the high‑yield market is open if they choose to access capital to smooth debt tranches.

USA Compression Partners Price Performance

Shares of NYSE USAC traded up $0.43 during mid-day trading on Tuesday, hitting $27.38. The company had a trading volume of 45,709 shares, compared to its average volume of 212,555. The business’s 50-day simple moving average is $27.48 and its 200-day simple moving average is $25.40. USA Compression Partners has a 12 month low of $21.85 and a 12 month high of $28.90. The firm has a market cap of $3.97 billion, a P/E ratio of 32.59 and a beta of 0.22.

USA Compression Partners Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, May 8th. Investors of record on Monday, April 27th will be paid a $0.525 dividend. This represents a $2.10 annualized dividend and a dividend yield of 7.7%. The ex-dividend date is Monday, April 27th. USA Compression Partners’s dividend payout ratio (DPR) is presently 250.00%.

Institutional Investors Weigh In On USA Compression Partners

Hedge funds have recently made changes to their positions in the stock. JPMorgan Chase & Co. lifted its stake in shares of USA Compression Partners by 29.8% in the fourth quarter. JPMorgan Chase & Co. now owns 4,599,073 shares of the oil and gas company’s stock valued at $105,779,000 after buying an additional 1,056,548 shares during the period. BNP Paribas Financial Markets lifted its stake in shares of USA Compression Partners by 233.3% in the third quarter. BNP Paribas Financial Markets now owns 1,443 shares of the oil and gas company’s stock valued at $35,000 after buying an additional 1,010 shares during the period. Energy Income Partners LLC lifted its stake in shares of USA Compression Partners by 6.5% in the third quarter. Energy Income Partners LLC now owns 402,578 shares of the oil and gas company’s stock valued at $9,662,000 after buying an additional 24,666 shares during the period. Jump Financial LLC lifted its stake in shares of USA Compression Partners by 157.0% in the fourth quarter. Jump Financial LLC now owns 109,251 shares of the oil and gas company’s stock valued at $2,513,000 after buying an additional 66,745 shares during the period. Finally, HRT Financial LP bought a new stake in shares of USA Compression Partners in the second quarter valued at about $1,555,000. Institutional investors own 47.77% of the company’s stock.

Analyst Ratings Changes

Several research firms recently issued reports on USAC. Texas Capital raised shares of USA Compression Partners from a “hold” rating to a “strong-buy” rating in a report on Monday, March 9th. Mizuho upped their price objective on shares of USA Compression Partners from $23.00 to $25.00 and gave the stock a “neutral” rating in a report on Monday, January 12th. Zacks Research cut shares of USA Compression Partners from a “strong-buy” rating to a “hold” rating in a report on Thursday, April 16th. Wall Street Zen cut shares of USA Compression Partners from a “buy” rating to a “hold” rating in a report on Saturday, February 21st. Finally, Stifel Nicolaus upped their price target on shares of USA Compression Partners from $27.00 to $30.00 and gave the company a “hold” rating in a report on Wednesday, February 18th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, USA Compression Partners presently has an average rating of “Hold” and a consensus target price of $26.67.

About USA Compression Partners

USA Compression Partners (NYSE: USAC) is a Houston-based master limited partnership specializing in natural gas compression services for oil and gas producers. The company offers a full suite of midstream compression solutions designed to enhance production flow and optimize field operations. Its core activities include the design, engineering, fabrication, installation, operation and maintenance of natural gas compression equipment onshore across key U.S. basins.

USA Compression’s product and service offerings encompass new equipment deployment, aftermarket parts and component sales, field service support, and instrumentation and control systems.