How did FNB's Q4 2024 earnings surprise impact investor sentiment?

**FNB's Q4 2024 earnings surprise had a mixed impact on investor sentiment**. Here's a detailed analysis: 1. **Positive Sentiment due to Earnings Surprise**: FNB's Q4 2024 earnings per share (EPS) exceeded expectations with an EPS surprise of $0.05. This positive surprise likely led to initial optimism among investors, as it indicated the bank's performance was stronger than anticipated. 2. **Negative Sentiment due to Lag in Previous Quarters**: However, this positive sentiment was tempered by the knowledge that FNB had lagged earnings estimates in the previous two quarters. The bank's EPS for Q3 2024 was $0.34, missing the consensus estimate of $0.36. This trend of not meeting expectations could have raised concerns among investors about the bank's consistency and profitability. 3. **Concerns over Non-Interest Income and Expenses**: Investors may have also been concerned about the bank's non-interest income and expenses. For instance, there was a slight increase in total delinquency and a rise in operating non-interest expenses, which could impact profitability. These factors can lead to a negative perception of the bank's operational efficiency and potential risks. 4. **Market Reaction**: Following the earnings release, FNB's stock experienced a decline, which could reflect investor disappointment or concerns that were not fully addressed by the earnings beat. The stock's reaction is often the most visible indicator of how investors perceive the earnings report. In conclusion, while the earnings surprise may have initially boosted sentiment, the overall impact was likely muted due to the bank's inconsistent performance relative to expectations and concerns over non-interest income and expenses. The market reaction of a decline in stock price post-earnings suggests that investors may have had reservations about the long-term sustainability of FNB's financial performance.