How did ACRE's Q4 earnings surprise investors?

Ares Commercial Real Estate (ACRE) experienced a notable earnings miss in Q4 2024, which likely surprised investors. Here are the key details:

1. **Earnings Per Share (EPS) Miss**: ACRE's EPS fell short of expectations, with the company reporting an EPS of -$0.20 for the quarter. This was a significant miss compared to the forecasted $0.06, resulting in a substantial negative surprise.

2. **Revenue Beat**: Despite the earnings miss, ACRE exceeded revenue expectations, reporting $17.51 million for the quarter compared to the forecasted $16.36 million. This indicates stronger-than-expected sales performance, which may have provided some relief to investors.
3. **Stock Reaction**: Following the earnings release, ACRE's stock experienced a notable decline, reflecting investor concerns over the earnings miss and broader financial performance. The stock traded below its Fair Value, suggesting that the market was discounting the company's near-term prospects.
4. **Dividend Yield**: ACRE maintained a high dividend yield of 12.8%, which could have been a positive aspect for income-focused investors. However, the company's decision to reduce its quarterly dividend to $0.15, down from $0.25, may have also raised questions about its financial stability and growth prospects.

In conclusion, ACRE's Q4 earnings report was disappointing due to the significant earnings miss, although the company's revenue beat expectations and its strong dividend yield may have provided some support to its stock. The overall impact of these factors likely resulted in a negative surprise for investors.