03 Sep Ares Commercial Real Estate Corporation (ACRE) Earnings Track Record And Post Earnings Reactions
36 days have passed by since the last earnings report for Ares Commercial Real Estate Corporation (NYSE:ACRE) and the new quarterly results look set to arrive in 61 days. The shares of ACRE at the moment are trading at a volume of 0.1 million, which compares with its normal daily standard volume of 162240 shares. This has led to the shares of the company declining by -0.33%, currently exchanging hands at $14.99 a share. ACRE stock has been up by $0.54 (-3.48%) ever since it reached its 52-week high of $15.53 back in March 19, 2019. It has progressed below its 50-day moving average of $15.15 and is down -0.93% over the past week. The stock has added 0.7% since the last one arrived so the question here is that will the upbeat trend in that time frame continue leading up to its next earnings release, or is the ACRE share price due for a correction?
Ares Commercial Real Estate Corporation (ACRE) Forecasts And Latest Quarter Earnings
Ahead of their fiscal third-quarter to be released on Thursday, Oct 31, 2019, 5 analysts who are covering the company are estimating that it will record a profit of $0.34 per share, with analysts having different outlooks from $0.33 to $0.35. The current agreed outlook, when compared to the profit recorded last year, is at $0.35 a share, thus a decrease of -2.86% is expected. The profit view for a complete financial year for Ares Commercial Real Estate Corporation is expected to be around $1.37 in current year, a growth of nearly -1.44% from last year which was $1.39.
Analyzing The Earnings History Of Ares Commercial Real Estate Corporation (NYSE:ACRE)
In the past few years, the ACRE stock has been known to miss the Wall Street’s earnings projection. The company missed 25% of the time, according to the data pulled on their earnings, was able to meet predictions on 1 occasions and topped expectations 8 times. Looking at the past trend, the price of Ares Commercial Real Estate Corporation shares had risen following the release of their earnings in 19 of the last 28 quarters.
Looking back, here is how Ares Commercial Real Estate Corporation (ACRE) stock reacted to earnings misses and beats. It gave investors reason to be bullish with the price going down after 1 of the last four earnings reports. The shares of Ares Commercial Real Estate Corporation recorded 1.67%, -1.84%, 5.92% and 2.01%, respectively, on the first day of past earnings releases. After a week of earnings reports, the changes were 1.34%, -1.45%, 7.77% and 3.95%. Their post-earnings price movements have resulted in an average increase of 1.94% and an average increase of 2.9% in Ares Commercial Real Estate Corporation on next day and 7th day, sequentially. ACRE’s one month stock performance led to its shares declining by -0.99% with a return of 2.81% witnessed over the last 52 weeks.
The lower number of analysts at Reuters has assigned a buy or better ratings (2) on the Ares Commercial Real Estate Corporation stock, while 3 of them have a rating of a Hold with the 11-year target price suggested by the analysts standing at $15.75. This price target implies potential upside of 5.07 percent over the next 12 months based on the current share price.
Ares Commercial Real Estate Corporation (ACRE) Post Earnings Announcement Drift (PEAD)
Back on July 26, 2019, Ares Commercial Real Estate Corporation (NYSE:ACRE) released its Q2 results, in which it recorded EPS of $0.38 that exceeded consensus estimates of $0.34. After the earnings were reported, the price of ACRE stock kicked off the session at $15.02 and remained in a range of $15.2 to $15.34 on the first day. The shares were priced at $15.19 at the close with a total volume of shares being 226042.
On May 01, 2019, the Q1 earnings report was disclosed with EPS of $0.3. This was below the estimation of $0.33 per share. The stock price range of ACRE was between $15.15 and $15.33 on the first-day post announcement, after opening the day at $14.87. The session came to close at $14.92 and there was a total volume of 298421 shares.
February 21, 2019 was the day when its Q4 results were unveiled. The earnings came in at $0.36, beating the projected $0.32 per share. The very next day, ACRE stock opened at $14.05 while staying in a range of $14.3 to $14.89. At the end, it moved to $14.86 a total volume of shares been 721680.
In the year-ago Q3 earnings on October 30, 2018, the company saw profit per share of $0.35. That was better than the $0.33 analysts had expected. Ares Commercial Real Estate Corporation share price started at $13.68 on the first full trading day post-earning and then exchanged hands between $13.68 and $14.23 throughout the session. The closing price of $14.21 came on the back of 134359 shares in volume.