Pulled from Benzinga Pro data, Antero Midstream (NYSE:AM) showed a loss in earnings since Q3, totaling $82.79 million. Sales, on the other hand, increased by 4.55% to $241.55 million during Q4. Antero Midstream reached earnings of $84.01 million and sales of $231.03 million in Q3.

What Is Return On Invested Capital?

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q4, Antero Midstream posted an ROIC of 2.53%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

For Antero Midstream, the positive return on invested capital ratio of 2.53% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.

Upcoming Earnings Estimate

Antero Midstream reported Q4 earnings per share at $0.2/share, which beat analyst predictions of $0.19/share.

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