How did FANG's Q4 earnings surprise investors?

**Diamondback Energy's (FANG) Q4 earnings exceeded investor expectations**, as evidenced by the company's reported earnings per share (EPS) and revenue surpassing estimates. 1. **Earnings Per Share (EPS)**: - FANG's actual EPS for Q4 2024 was $3.64. - The estimated EPS was $3.45. - This resulted in an EPS surprise of $0.19, indicating that the company's actual performance exceeded investor expectations. 2. **Revenue**: - The company's actual revenue for the quarter was $3.71 billion. - The estimated revenue was $3.55 billion. - This represented a revenue surprise of $160 million, suggesting that FANG's revenue outperformed projections. 3. **Analyst Reaction**: - Analysts from UBS maintained a "Buy" rating on FANG with a target price of $216, indicating confidence in the company's performance and potential for growth. - Benchmark also expressed optimism, maintaining a target price of $195, reflecting a positive outlook on the stock. 4. **Market Sentiment**: - Despite a significant drop in FANG's stock price by 12.68%, the positive earnings surprise could potentially lead to a rebound in investor sentiment. - The company's decision to increase its annual base dividend by 11% to $4.00 per share may further enhance investor confidence. In conclusion, FANG's Q4 earnings exceeded investor expectations, with a notable beat in EPS and revenue. This performance, coupled with positive analyst ratings and the company's strategic decision to increase dividends, is likely to have a favorable impact on investor sentiment and the stock's future prospects.