How did WTTR's Q4 earnings surprise analysts?

Select Water Solutions (WTTR) reported Q4 earnings that slightly missed analysts' expectations in terms of revenue but exceeded expectations in terms of earnings per share (EPS). 1. **Revenue Performance**: - WTTR's revenue for Q4 was not disclosed, but the company's Q3 revenue was $371.3 million, which was a 4.6% decrease from the previous quarter's revenue. This decline was anticipated, as the company faced seasonal challenges in Q4. - Analysts had expected Q4 revenue to be higher, with a consensus estimate of $371.48 million for Q2 2024, which WTTR missed by 1.71%. 2. **Earnings Per Share (EPS) Performance**: - WTTR's diluted EPS for Q4 was not provided, but in the previous quarter (Q3), the company reported an EPS of $0.16, which was a 23% increase from the EPS of $0.14 in Q3 2023. - Analysts had anticipated an EPS of $0.11 for Q4, based on the company's historical performance and market conditions. - Therefore, WTTR's actual EPS in Q4 exceeded analysts' expectations, although the company did not provide the specific EPS figure for Q4. 3. **Overall Performance and Outlook**: - Despite the slight miss in revenue, WTTR's overall financial performance for Q4 was robust, with a strong earnings outlook for the upcoming year. - The company's infrastructure network expansion and ongoing projects in key regions like the Permian Basin and Bakken indicate a positive growth trajectory. - WTTR anticipates achieving record adjusted EBITDA for 2024 and significant growth in 2025, with a focus on enhancing operations and improving profitability. In conclusion, while WTTR's Q4 revenue fell slightly short of analysts' expectations, the company's EPS exceeded forecasts, reflecting strong financial performance and a positive market outlook.