Ares Commercial Real Estate (ACRE) Lags Q3 Earnings and Revenue Estimates

Core Insights - Ares Commercial Real Estate (ACRE) reported quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.11 per share, and down from $0.25 per share a year ago, indicating a significant earnings surprise of -36.36% [1] - The company posted revenues of $39.35 million for the quarter ended September 2024, which was 1.44% below the Zacks Consensus Estimate and a decline from $52.82 million year-over-year [2] - ACRE shares have decreased by approximately 37.4% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] Earnings Outlook - The earnings outlook for ACRE is currently unfavorable, with a Zacks Rank of 4 (Sell), suggesting expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is -$0.03 on revenues of $37.73 million, and for the current fiscal year, it is -$0.59 on revenues of $162.54 million [7] Industry Context - The REIT and Equity Trust industry, to which ACRE belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a relatively strong position within the market [8]