Ares Commercial Real Estate (ACRE) reported $33.49 million in revenue for the quarter ended December 2024, representing a year-over-year decline of 24.5%. EPS of -$0.15 for the same period compares to $0.20 a year ago.

The reported revenue represents a surprise of -8.09% over the Zacks Consensus Estimate of $36.44 million. With the consensus EPS estimate being $0.06, the EPS surprise was -350.00%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Ares Commercial Real Estate performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Revenue- Revenue from real estate owned: $6.30 million versus the two-analyst average estimate of $5.05 million. The reported number represents a year-over-year change of +99.3%.
• Revenue- Interest income: $33.49 million versus the two-analyst average estimate of $36.44 million. The reported number represents a year-over-year change of -24.5%.
• Revenue- Net interest margin: $11.21 million versus $12.76 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -22.1% change.

View all Key Company Metrics for Ares Commercial Real Estate here>>>

Shares of Ares Commercial Real Estate have returned +8% over the past month versus the Zacks S&P 500 composite's +4.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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