Apollo Commercial Real Estate Finance (ARI) To Report Earnings Tomorrow: Here Is What To Expect

Commercial real estate REIT Apollo Commercial Real Estate Finance (NYSE:ARI) will be reporting earnings this Tuesday after market hours. Here’s what to look for.

Apollo Commercial Real Estate Finance beat analysts’ revenue expectations by 5% last quarter, reporting revenues of $65.82 million, down 18.3% year on year. It was a very strong quarter for the company, with a decent beat of analysts’ EPS estimates.

Is Apollo Commercial Real Estate Finance a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Apollo Commercial Real Estate Finance’s revenue to decline 9.9% year on year to $73.11 million, improving from the 12% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.

Apollo Commercial Real Estate Finance Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Apollo Commercial Real Estate Finance has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 5.7% on average.

Looking at Apollo Commercial Real Estate Finance’s peers in the thrifts & mortgage finance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. PennyMac Financial Services’s revenues decreased 7.1% year on year, missing analysts’ expectations by 19.8%, and Ladder Capital reported a revenue decline of 21.4%, in line with consensus estimates. PennyMac Financial Services traded down 7.5% following the results while Ladder Capital’s stock price was unchanged.

Read our full analysis of PennyMac Financial Services’s results here and Ladder Capital’s results here.

There has been positive sentiment among investors in the thrifts & mortgage finance segment, with share prices up 4.3% on average over the last month. Apollo Commercial Real Estate Finance is up 2.5% during the same time and is heading into earnings with an average analyst price target of $10.35 (compared to the current share price of $9.92).

Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.