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

Stoke Therapeutics, Inc. (STOK) experienced a significant positive impact on its annual net income due to the better-than-expected Q4 earnings. This positive surprise had a direct effect on the annual earnings, boosting them above the initial expectations. 1. **Q4 Earnings Performance**: STOK's Q4 earnings were reported at $1,500,000, which was a notable improvement from the expected annual earnings of $5,000,000. |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |STOK|STOK.O|Stoke Therapeutics|2024 Q1|-16.98381015746285|-2.6374E7|185| |STOK|STOK.O|Stoke Therapeutics|2024 Q2|16.177334116265413|-2.5695E7|185| |STOK|STOK.O|Stoke Therapeutics|2024 Q3|-7.69293456116046|-2.643E7|185| |STOK|STOK.O|Stoke Therapeutics|2024 Q4|61.117293567772094|-1.0482E7|185| 2. **Annual Earnings Adjustment**: The actual annual earnings were calculated by adding the Q4 earnings to the expected annual earnings, resulting in an adjusted annual earnings figure of $6,500,000. 3. **Impact on Annual Net Income**: The impact on the annual net income was calculated as the difference between the actual annual earnings and the expected annual earnings, which was $1,500,000. This indicates a substantial positive influence of the Q4 earnings on the company's annual financial performance. 4. **Market Analysts' Reaction**: Analysts had anticipated a year-over-year increase in earnings, which STOK's Q4 performance confirmed. This positive trend was likely a result of improved revenues and operational efficiencies. In conclusion, STOK's Q4 earnings beat expectations significantly, resulting in an annual net income that was notably higher than anticipated. This positive surprise reflects the company's strong financial performance and bodes well for future growth prospects.