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

Krystal Biotech (KRYS) experienced a positive earnings surprise in Q4 2024, with an EPS surprise of $0.23. This positive surprise likely had a favorable impact on the company's annual performance, as it indicates that the company's actual performance exceeded market expectations. 1. **Improved Financial Outlook**: The earnings surprise can be seen as a positive indicator for the company's financial performance, suggesting that Krystal Biotech may have outperformed market expectations in terms of profitability. This can lead to an improved financial outlook for the company, potentially attracting more investors and boosting investor confidence. 2. **Increased Revenue Projection**: If the earnings surprise was primarily driven by higher revenue, it could suggest that the company's revenue projections for the year may need to be revised upwards. This could lead to higher price targets from analysts and increased investor optimism about the company's future growth prospects. 3. **Enhanced Market Sentiment**: A positive earnings surprise can also have a positive impact on market sentiment. It can lead to increased demand for the company's stock as investors anticipate further price appreciation. This can create a self-reinforcing cycle where the stock price rises, attracting more buyers and driving the price even higher. 4. **Long-term Growth Prospects**: If the earnings surprise was due to strategic initiatives or operational improvements, it could indicate a strong long-term growth potential for the company. This could lead to increased interest from long-term investors who are looking for stable and sustainable growth opportunities.