What's driving ACR's EPS volatility in 2024?

ACRES Commercial Realty Corp.'s (ACR) EPS volatility in 2024 can be attributed to a combination of factors:

1. **Earnings Misses**: ACR's EPS was below market expectations in both Q2 and Q3 of 2024, with Q3 EPS being $0.24, missing the consensus estimate of $0.39. This trend indicates a potential decline in profitability or operational efficiency issues.
2. **Implied Volatility in Options Market**: The implied volatility of ACR's options, particularly the Nov 15, 2024 $10.00 Put, was high compared to other equity options. This suggests that market participants were anticipating significant price swings or uncertainty in ACR's stock price, which could reflect underlying issues with the company's financial performance or market sentiment.
3. **Sales of Preferred Stock**: The sale of over $540k in ACR's preferred stock by Eagle point entities could have diluted existing shareholders' equity, potentially impacting EPS if the additional capital was not efficiently utilized or if it led to dilution of earnings.

In summary, ACR's EPS volatility in 2024 is likely a result of a combination of earnings misses, high implied volatility in the options market indicating potential stock price swings, and the sale of preferred stock that could have diluted EPS.