How did OSPN's Q4 earnings surprise investors?

OneSpan's (OSPN) Q4 earnings report disappointed investors due to a significant drop in revenue and a substantial miss on earnings per share (EPS) estimates. 1. **Revenue Decline**: The company experienced a 4% year-over-year revenue decline, totaling $56.2 million. This decrease in revenue could have been a surprise to investors who were expecting growth or at least stability in sales. 2. **Earnings Miss**: The estimated EPS for Q4 was $0.25, but the company reported earnings of $0.21 per share. This represents a substantial miss, as the reported earnings were below the analysts' expectations. 3. **Analyst Expectations**: Prior to the earnings release, analysts had lowered their earnings estimates for OneSpan, with DA Davidson predicting an EPS of $0.72 for the fiscal year 2024, which was significantly higher than the actual EPS of $0.21. This suggests that the market was already bracing for lower-than-expected earnings, but the actual figure was still disappointing. 4. **Market Reaction**: The market's reaction to the earnings report was negative, with the stock price experiencing a decline of 5.41%. This decline reflects investor disappointment and potential concerns about the company's future performance. In conclusion, OneSpan's Q4 earnings report was disappointing due to a combination of revenue decline and a significant earnings miss, which led to a negative market reaction.