Ares Commercial Real ACRE releases its next round of earnings this Friday, July 30. Here is Benzinga's essential guide to Ares Commercial Real's Q2 earnings report.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Sell-side analysts expect Ares Commercial Real's EPS to be near $0.35 on sales of $20.00 million. In the same quarter last year, Ares Commercial Real reported earnings per share of $0.32 on revenue of $17.98 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
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 Friday, quarterly profit would be up 9.37%. Sales would be have grown 11.22% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.37 | 0.35 | 0.24 | 0.25 |
| EPS Actual | 0.40 | 0.41 | 0.31 | 0.32 |
| Revenue Estimate | 18.11 M | 17.76 M | 17.15 M | 16.92 M |
| Revenue Actual | 21.22 M | 21.20 M | 22.37 M | 17.98 M |
Want Real-Time Earnings Calendar Updates?
Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.
Stock Performance
Shares of Ares Commercial Real were trading at $15.31 as of July 28. Over the last 52-week period, shares are up 68.46%. Given that these returns are generally positive, long-term shareholders are probably happy 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.
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