Archrock Got Hammered in November After a Tough Earnings Report

Shares of gas compression services provider Archrock (NYSE: AROC) declined 17.5% in November and its subsidiary partnership, Archrock Partners (NASDAQ: APLP) also dropped 12%. The significant driver of this past month's poor performance was the company's third-quarter earnings report on Nov. 2, which was below Wall Street's expectations.

For the third quarter, Archrock reported a per-share loss of $0.09, which was well below the $0.02 per share loss Wall Street was expecting. It also doesn't help that management hasn't been able to stay on track to reduce leverage at Archrock Partners. At the beginning of the year, management stated that it wanted to achieve a leverage ratio of 3.5 times. At the end of the quarter, though, Archrock Partners' debt-to-EBITDA ratio was 6.2 times. According to management definitions, leverage and debt-to-EBITDA aren't exactly the same metric, but they are close enough to show that management is nowhere near its goal.

Image source: Getty Images.

Source: Fool.com