How did GOTU's Q4 earnings surprise impact its stock?

Gaotu Techedu's (GOTU) Q4 earnings report revealed an EPS surprise of $0 and a revenue surprise of -$12.62 million. The absence of a positive EPS surprise, coupled with a significant revenue shortfall, likely contributed to the negative market reaction. |code|Ticker|Name|Date|Revenue Surprise|EPS Surprise|market_code| |---|---|---|---|---|---|---| |GOTU|GOTU.N|Gaotu Techedu|2024 Q1|572000|0|169| |GOTU|GOTU.N|Gaotu Techedu|2024 Q2|5960475|-0.02|169| |GOTU|GOTU.N|Gaotu Techedu|2024 Q3|-605000|-0.14|169| |GOTU|GOTU.N|Gaotu Techedu|2024 Q4|-1.262E7|0|169| 1. **Analysts' Expectations**: Prior to the earnings release, analysts had estimated an EPS of $0.00 for Gaotu Techedu. The company's actual EPS was $0, which met analysts' expectations. However, the revenue surprise of -$12.62 million indicated that Gaotu Techedu's revenue had declined below expectations. 2. **Market Reaction**: Gaotu Techedu's stock fell by 5.82% following the release of the Q4 earnings report. This decline suggests that investors may have reacted negatively to the news of declining revenues and the resultant negative earnings surprise. 3. **Investor Sentiment**: The stock's performance after the earnings release indicates that investor sentiment may have been influenced by the company's financial performance. The negative surprise in revenue, despite meeting EPS expectations, could have led to concerns about the company's growth prospects and operational challenges.