Stock of the Day

October 18, 2023

USA Compression Partners (USAC)

$27.11
+$0.18 (+0.7%)
Market Cap: $3.90B

About USA Compression Partners

USA Compression Partners, LP provides compression services under term contracts with customers in the natural gas and crude oil industries in the United States. The company engineers, designs, operates, services, and repairs its compression units; and maintains related support inventory and equipment. It also provides compression services in various shale plays, including the Utica, Marcellus, Permian Basin, Delaware Basin, Eagle Ford, Mississippi Lime, Granite Wash, Woodford, Barnett, Haynesville, Niobrara, and Fayetteville shales. As of December 31, 2017, the company had approximately 1,799,781 horsepower in its fleet. It serves oil companies; and independent producers, processors, gatherers, and transporters of natural gas and crude oil. USA Compression GP, LLC operates as the general partner of USA Compression Partners, LP. The company was formerly known as Compression Holdings, LP, and changed its name to USA Compression Partners, LP in June 2011. USA Compression Partners, LP was founded in 1998 and is headquartered in Austin, Texas.

Today's Trend

USA Compression Partners, LP (NYSE: USAC) is facing negative sentiment after Zacks Research reduced its earnings forecasts across multiple upcoming periods and reiterated a “Strong Sell” rating.

  • Zacks cut its Q3 2026 EPS estimate to $0.19 from $0.25 and lowered its Q4 2026 estimate to $0.23 from $0.28. The firm also reduced its FY2026 forecast to $1.00 from $1.04, signaling weaker near-term earnings expectations. USA Compression Partners analyst estimates
  • Longer-term projections were also cut: FY2027 EPS fell to $1.12 from $1.22, FY2028 EPS declined to $1.36 from $1.46, and estimates for Q1–Q4 2027 and Q1 2028 were reduced. These revisions suggest analysts see less earnings power than previously expected. USA Compression Partners earnings forecasts
  • The repeated estimate reductions and Zacks’ “Strong Sell” stance are likely weighing on USAC, particularly because the company’s highly leveraged balance sheet leaves less room for weaker operating performance. The current full-year consensus estimate is approximately $1.00 per share.
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