Benzinga | May 3, 2021 10:20AM EDT

Earnings Outlook For Ares Commercial Real

On Tuesday, May 04, Ares Commercial Real (NYSE:ACRE) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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

Ares Commercial Real earnings will be near $0.37 per share on sales of $18.11 million, according to analysts. Ares Commercial Real reported a profit of $0.32 per share when it published results during the same quarter last year. Sales in that period totaled $21.13 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.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be up 15.62%. Revenue would be down 14.31% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.35 0.24 0.25 0.34EPS Actual 0.41 0.31 0.32 0.32Revenue Estimate 17.76 M 17.15 M 16.92 M 14.10 MRevenue Actual 21.20 M 22.37 M 17.98 M 21.13 M

Stock Performance

Shares of Ares Commercial Real were trading at $14.77 as of April 30. Over the last 52-week period, shares are up 99.46%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Ares Commercial Real is scheduled to hold the call at 12:00:00 ET and can be accessed here.