How did EGBN's Q1 2024 earnings surprise investors?

Eagle Bancorp (EGBN) reported a net loss of $338,000 in Q1 2024, with a total revenue of $78.29 million and a diluted EPS of -$0.01. The net income growth rate was -24.4%, and the total revenue growth rate was -1.35% compared to the previous year. The bank's Q1 2024 earnings fell short of investor expectations, leading to a negative surprise. 1. **Earnings Performance**: EGBN's net income for Q1 2024 was -$338,000, which is a significant decline from the previous quarter's net income of $15.29 million. This substantial decrease in net income contributed to the earnings miss. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |EGBN|EGBN.O|Eagle Bancorp|2023 Q2|82.79816513761467|-9.12728012477114|91.83673469387755|186| |EGBN|EGBN.O|Eagle Bancorp|2023 Q3|-26.581226372094267|-13.607981615380304|-21.55172413793103|186| |EGBN|EGBN.O|Eagle Bancorp|2023 Q4|-52.06550849667006|-16.54367693475129||186| |EGBN|EGBN.O|Eagle Bancorp|2024 Q1|-101.39473467029794|-0.5551039073217824|-101.28205128205127|186| 2. **Revenue Analysis**: The total revenue for the quarter was $78.29 million, which is slightly higher than the previous year's revenue. However, the growth rate of -1.35% indicates a decline in revenue when compared to the same period last year. 3. **Analyst Expectations**: Analysts had estimated an EPS of $0.68 for Q1 2024. However, EGBN reported a diluted EPS of -$0.01, which is a significant deviation from the expected value, contributing to the earnings surprise. 4. **Dividend and Stock Repurchase Plan**: Despite the earnings miss, EGBN declared a quarterly cash dividend of $0.45 per share, and renewed its stock repurchase plan, which could be seen as positive signals to investors, potentially mitigating some of the negative sentiment. In conclusion, EGBN's Q1 2024 earnings fell short of investor expectations due to a significant decrease in net income and a negative diluted EPS, despite a slight increase in total revenue. The bank's dividend and stock repurchase plans may help to counterbalance the negative impact of the earnings miss.