Benzinga | Apr 21, 2021 10:57AM EDT

Apollo Commercial Real Earnings Preview

Apollo Commercial Real (NYSE:ARI) announces its next round of earnings this Thursday, April 22. Here is Benzinga's everything-that-matters guide for this Thursday's Q1 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street expects EPS of $0.34 and sales around $66.06 million. Apollo Commercial Real reported a profit of $0.4 per share when it published results during the same quarter last year. Sales in that period totaled $74.67 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street estimate would represent a 15.0% decline in the company's earnings. Revenue would be down 11.53% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.32 0.30 0.29 0.39EPS Actual 0.36 0.36 0.38 0.40Revenue Estimate 66.28 M 67.60 M 67.90 M 77.60 MRevenue Actual 64.70 M 68.56 M 70.76 M 74.67 M

Stock Performance

Shares of Apollo Commercial Real were trading at $14.59 as of April 20. Over the last 52-week period, shares are up 103.19%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Apollo Commercial Real is scheduled to hold the call at 10:00:00 ET and can be accessed here.