What does WDH's 2024 EPS say about future growth?

**Waterdrop's 2024 EPS indicates a positive outlook for future growth**, as evidenced by several key metrics and trends: 1. **Consistent Growth in EPS**: Waterdrop's EPS has shown a consistent upward trend over the past quarters, with significant year-over-year increases. For instance, the EPS was CN¥1.01 in 2024, up from CN¥0.44 in 2023. This indicates a strong improvement in profitability, which is a positive indicator for future growth. |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |WDH|WDH.N|Waterdrop|2024 Q1|90.23031732157014|0.002769968|169| |WDH|WDH.N|Waterdrop|2024 Q2|99.5624130614473|0.0027520916|169| |WDH|WDH.N|Waterdrop|2024 Q3|211.9015127526787|0.0042749658|169| |WDH|WDH.N|Waterdrop|2024 Q4|45.90235294242941|0.0041099832|169| 2. **Strong Revenue Growth**: The company's revenue has been growing steadily, with a 5.4% increase in 2024 compared to the previous year. This increase was primarily driven by higher revenue from the Insurance segment, which contributed 85% of the total revenue. The growth in revenue is a strong predictor of future earnings and can support further investments in growth opportunities. 3. **Profit Margin Improvement**: Waterdrop's profit margin improved significantly, from 6.4% in 2023 to 13% in 2024. This improvement was driven by higher revenue, which is a positive sign for future growth as it indicates the company's ability to generate more profits from its operations. 4. **Future Growth Forecasts**: Analysts forecast that Waterdrop's revenue will grow at an average annual rate of 8.2% over the next three years, which is higher than the 4.9% growth forecast for the Insurance industry in the US. This suggests that Waterdrop is well-positioned for future growth, potentially outpacing its industry peers. 5. **Positive Market Sentiment**: Despite not having an available consensus rating or price target, the company's shares have shown an increase, with a 17% rise from a week ago. This positive market sentiment can be a precursor to future growth, as investor confidence often translates into increased investment and capital availability for the company to pursue growth initiatives. In conclusion, Waterdrop's 2024 EPS, along with its revenue growth and profit margin improvements, suggest a strong potential for future growth. The company's financial performance and market sentiment indicate a positive outlook, which could be indicative of continued success in the insurance and healthcare sectors.