Earnings Outlook For Aris Water Solutions

Aris Water Solutions ARIS is preparing to release its quarterly earnings on Tuesday, 2025-05-06. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Aris Water Solutions to report an earnings per share (EPS) of $0.28.

The market awaits Aris Water Solutions's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Overview of Past Earnings

During the last quarter, the company reported an EPS missed by $0.07, leading to a 20.73% increase in the share price on the subsequent day.

Stock Performance

Shares of Aris Water Solutions were trading at $25.52 as of May 05. Over the last 52-week period, shares are up 49.33%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Opinions on Aris Water Solutions

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Aris Water Solutions.

Analysts have provided Aris Water Solutions with 1 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $29.0, suggesting a potential 13.64% upside.

Comparing Ratings with Competitors

In this analysis, we delve into the analyst ratings and average 1-year price targets of ProFrac Holding, Solaris Energy and NPK International, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for ProFrac Holding, with an average 1-year price target of $6.5, suggesting a potential 74.53% downside.
• Analysts currently favor an Outperform trajectory for Solaris Energy, with an average 1-year price target of $48.6, suggesting a potential 90.44% upside.
• Analysts currently favor an Buy trajectory for NPK International, with an average 1-year price target of $12.0, suggesting a potential 52.98% downside.

Key Findings: Peer Analysis Summary

The peer analysis summary outlines pivotal metrics for ProFrac Holding, Solaris Energy and NPK International, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Aris Water Solutions ranks in the middle for consensus rating. It is at the bottom for revenue growth among peers. In terms of gross profit, it is at the top. For return on equity, it is in the middle compared to its peers.

Discovering Aris Water Solutions: A Closer Look

Aris Water Solutions Inc is an environmental infrastructure and solutions company delivering full-cycle water handling and recycling solutions. Its integrated pipelines and related infrastructure create long-term value by delivering high-capacity, comprehensive produced water management, recycling, and supply solutions to operators in the core areas of the Permian Basin. The company manages its business through a single operating segment comprising two primary revenue streams, Produced Water Handling and Water Solutions. The Produced Water Handling business gathers, transports, and unless recycled, handles produced water generated from oil and natural gas production, and the Water Solutions business develops and operates recycling facilities to treat, store, and recycle produced water.

Financial Insights: Aris Water Solutions

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Aris Water Solutions's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 13.91%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Energy sector.

Net Margin: Aris Water Solutions's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 3.2%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Aris Water Solutions's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.1%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.27%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 1.32, Aris Water Solutions adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Aris Water Solutions visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.