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Apollo Commercial (ARI) to Post Q3 Earnings: What Lies Ahead?
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Apollo Commercial Real Estate Finance (ARI - Free Report) is scheduled to report third-quarter results on Oct 24, after the market closes. The company’s results will likely reflect year-over-year growth in its earnings per share (EPS) and net interest income (NII).
In the last reported quarter, this New York-headquartered mortgage real estate investment trust (REIT), which primarily focuses on originating and investing in commercial real estate mortgage loans and other related debt investments posted EPS of 44 cents, surpassing the Zacks Consensus Estimate by a whisker.
Over the trailing four quarters, the company surpassed the Zacks Consensus Estimate in three occasions and met in the other. It delivered an average positive surprise of 18.98% during this period. The graph below depicts this surprise history:
Apollo Commercial Real Estate Finance Price and EPS Surprise
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
A significant portion of Apollo Commercial’s asset loan portfolio is based on floating rate. Hence, given the rise in LIBOR rates, the company’s top line is expected to benefit. In fact, for third-quarter 2018, the Zacks Consensus Estimate for NII is pegged at $77 million and represents year-over-year growth of 8.39%.
However, yield-curve flattening and escalating trade-war tensions have elevated concerns over global economies and acted as dampeners in the Sep-end quarter. Further, higher interest rate is expected to impact the company’s book value.
We also anticipate the company to witness lower asset yields, as capital from loans maturing in the third quarter are rotated into new investments.
Hence, there is lack of any solid catalyst prior to the third-quarter earnings release. As such, the Zacks Consensus Estimate of EPS for the to-be-reported quarter remained unrevised at 48 cents, over the past month. Nonetheless, it reflects year-over-year growth of 2.13%.
Earnings Whispers
Our proven model does not conclusively show that Apollo Commercial is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. That is not the case here, as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earning ESP: Apollo Commercial’s Earnings ESP is -3.16%.
Zacks Rank: The company currently carries a Zacks Rank of 3, which increases the predictive power of ESP. However, we also need a positive ESP to be confident of the earnings beat.
Stocks That Warrant a Look
While the other players in this space are lined up to report financial results, below are three stocks, poised to beat on earnings per the proven Zacks model. You can see the complete list of today’s Zacks #1 Rank stocks here.
Granite Point Mortgage Trust Inc. (GPMT - Free Report) , slated to report third-quarter results on Nov 5, has an Earnings ESP of +1.7% and holds a Zacks Rank of 2.
Hannon Armstrong Sustainable Infrastructure Capital, Inc (HASI - Free Report) , set to release the Jul-Sep quarter figures on Nov 7, has an Earnings ESP of +7.69% and a Zacks Rank of 3.
Two Harbors Investments Corp (TWO - Free Report) , scheduled to report quarterly numbers on Nov 6, has an Earnings ESP of +0.7% and carries a Zacks Rank of 3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Apollo Commercial (ARI) to Post Q3 Earnings: What Lies Ahead?
Apollo Commercial Real Estate Finance (ARI - Free Report) is scheduled to report third-quarter results on Oct 24, after the market closes. The company’s results will likely reflect year-over-year growth in its earnings per share (EPS) and net interest income (NII).
In the last reported quarter, this New York-headquartered mortgage real estate investment trust (REIT), which primarily focuses on originating and investing in commercial real estate mortgage loans and other related debt investments posted EPS of 44 cents, surpassing the Zacks Consensus Estimate by a whisker.
Over the trailing four quarters, the company surpassed the Zacks Consensus Estimate in three occasions and met in the other. It delivered an average positive surprise of 18.98% during this period. The graph below depicts this surprise history:
Apollo Commercial Real Estate Finance Price and EPS Surprise
Apollo Commercial Real Estate Finance Price and EPS Surprise | Apollo Commercial Real Estate Finance Quote
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
A significant portion of Apollo Commercial’s asset loan portfolio is based on floating rate. Hence, given the rise in LIBOR rates, the company’s top line is expected to benefit. In fact, for third-quarter 2018, the Zacks Consensus Estimate for NII is pegged at $77 million and represents year-over-year growth of 8.39%.
However, yield-curve flattening and escalating trade-war tensions have elevated concerns over global economies and acted as dampeners in the Sep-end quarter. Further, higher interest rate is expected to impact the company’s book value.
We also anticipate the company to witness lower asset yields, as capital from loans maturing in the third quarter are rotated into new investments.
Hence, there is lack of any solid catalyst prior to the third-quarter earnings release. As such, the Zacks Consensus Estimate of EPS for the to-be-reported quarter remained unrevised at 48 cents, over the past month. Nonetheless, it reflects year-over-year growth of 2.13%.
Earnings Whispers
Our proven model does not conclusively show that Apollo Commercial is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. That is not the case here, as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earning ESP: Apollo Commercial’s Earnings ESP is -3.16%.
Zacks Rank: The company currently carries a Zacks Rank of 3, which increases the predictive power of ESP. However, we also need a positive ESP to be confident of the earnings beat.
Stocks That Warrant a Look
While the other players in this space are lined up to report financial results, below are three stocks, poised to beat on earnings per the proven Zacks model. You can see the complete list of today’s Zacks #1 Rank stocks here.
Granite Point Mortgage Trust Inc. (GPMT - Free Report) , slated to report third-quarter results on Nov 5, has an Earnings ESP of +1.7% and holds a Zacks Rank of 2.
Hannon Armstrong Sustainable Infrastructure Capital, Inc (HASI - Free Report) , set to release the Jul-Sep quarter figures on Nov 7, has an Earnings ESP of +7.69% and a Zacks Rank of 3.
Two Harbors Investments Corp (TWO - Free Report) , scheduled to report quarterly numbers on Nov 6, has an Earnings ESP of +0.7% and carries a Zacks Rank of 3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>