How did CCRN's Q4 earnings surprise impact its annual performance?

Cross Country Healthcare Inc (CCRN) experienced a decline in net income in the fourth quarter (Q4), which had a significant impact on its annual performance. 1. **Q4 Performance**: CCRN's Q4 net income was not provided in the financial reports, but the company faced market challenges, as indicated by the decline in revenue and gross margin. 2. **Annual Performance Impact**: - In Q3 2024, CCRN's revenue was $315 million, marking a 7% sequential and 29% year-over-year decrease. - The gross margin decreased by 40 basis points sequentially and 160 basis points year-over-year, reaching 20.4%. - Adjusted EBITDA was $10 million, yielding a margin of 3.3%. - Considering the Q3 performance and the undisclosed Q4 net income, it is evident that the company faced considerable pressure, which likely intensified when compounded over the full year. 3. **Analyst Expectations and Actual Performance**: Analysts had anticipated higher earnings per share (EPS) for Q4, with a mean expectation of 12 cents per share. The actual EPS in Q4 was lower than the previous quarter's EPS of 12 cents, indicating a decline in profitability. 4. **Annual Financial Health Indicators**: The annual adjusted EPS was lower than the previous year, with Q4's performance contributing to this decline. The company's financial health indicators, such as revenue and gross margin, showed deterioration over the same period last year, which would have further impacted profitability. In conclusion, CCRN's Q4 earnings decline likely exacerbated the challenges faced by the company in 2024, resulting in a weaker annual performance compared to the previous year. The undisclosed Q4 net income and the lower-than-expected EPS underscore the difficulties encountered by CCRN in navigating market challenges.