Ares Commercial Real Estate (ACRE) Beats Q1 Earnings Estimates

Company Performance - Ares Commercial Real Estate (ACRE) reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of a loss of $0.07 per share, and showing improvement from a loss of $0.62 per share a year ago, resulting in an earnings surprise of 285.71% [1] - The company posted revenues of $27.48 million for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 17.73% and decreased from year-ago revenues of $44.03 million [2] - Over the last four quarters, ACRE has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during this period [2] Stock Outlook - Ares Commercial Real Estate shares have declined approximately 30.1% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $31.75 million, and for the current fiscal year, it is -$0.17 on revenues of $126.6 million [7] - The estimate revisions trend for ACRE is currently unfavorable, leading to a Zacks Rank of 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The REIT and Equity Trust industry, to which ACRE belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting that stocks in the top 50% of Zacks-ranked industries outperform those in the bottom 50% by more than 2 to 1 [8]