How might TLS's Q4 2024 EPS performance impact future guidance?

**Telos's Q4 2024 EPS performance may influence future guidance in several ways:** 1. **Positive Surprise and Guidance Alignment**: - Telos's Q4 2024 EPS exceeded expectations with a reported loss of -0.04 USD, better than the forecasted -0.11 USD. This positive surprise could lead to more optimistic future guidance. - The company's first-quarter 2025 revenue guidance is $28.2 million to $30.2 million, indicating a 7% to 15% sequential growth. This suggests that the company is confident in its continued growth trajectory, which could be reflected in more bullish EPS guidance. 2. **Revenue Growth and Program Expansion**: - Revenue for Q4 2024 grew by 11% sequentially, driven by strong performance in Security Solutions. The expansion of TSA PreCheck enrollment centers and growth in key programs like DMDC and DHS could support higher revenue expectations. - The company's expectation of positive cash flow from operations and positive free cash flow in Q1 2025 may influence guidance, as a strong financial outlook can lead to more ambitious EPS targets. 3. **Potential Challenges and Guidance Conservatism**: - Despite the positive earnings, Telos's stock experienced a significant drop, which could be due to broader market conditions or investor concerns. This might lead to a more cautious approach in setting future EPS guidance. - The company's Q1 2024 EPS estimate for the upcoming earnings release is -$0.15, which is less than the Q4 performance. This could indicate a more conservative approach to future guidance, as the company may want to account for potential fluctuations in performance. In conclusion, Telos's Q4 2024 EPS performance sets a positive tone for future guidance, with the potential for more optimistic projections due to revenue growth and program expansions. However, the company's conservative approach to earnings estimates and broader market conditions may influence a more cautious stance in setting EPS targets.