Market Overview

Earnings Outlook For Apollo Commercial Real


Apollo Commercial Real (NYSE: ARI) will be releasing its next round of earnings this Monday, October 26. For all of the relevant information, here is your guide for Monday's Q3 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

Analysts predict Apollo Commercial Real will report earnings of $0.3 per share on revenue of $67.60 million. Apollo Commercial Real reported a profit of $0.47 per share when it published results during the same quarter last year. Sales in that period totaled $85.22 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Monday, EPS would be down 36.17%. Sales would be down 20.67% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.29 0.39 0.46 0.47
EPS Actual 0.38 0.40 0.46 0.47
Revenue Estimate 67.90 M 77.60 M 85.03 M 86.17 M
Revenue Actual 70.76 M 74.67 M 81.45 M 85.22 M

Stock Performance

Shares of Apollo Commercial Real were trading at $9 as of October 22. Over the last 52-week period, shares are down 49.83%. Given that these returns are generally negative, long-term shareholders are probably down 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 10:30:00 ET and can be accessed here.


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Posted-In: Earnings