Why did GOSS's Q4 earnings surprise exceed forecasts?

Gossamer Bio's (GOSS) Q4 earnings surprise exceeded forecasts due to several key factors: 1. **Revenue Outperformance**: Gossamer Bio reported quarterly revenues of $9.34 million for Q4 2024, surpassing the consensus forecast of $7.02 million. This significant revenue outperformance contributed to the earnings surprise. 2. **Expense Management**: The company's research and development (R&D) expenses increased to $36.1 million in Q4 2024, up from $30 million in Q4 2023. Despite the higher R&D costs, the company managed to achieve better-than-expected results, indicating efficient management and operational effectiveness. 3. **Earnings Per Share (EPS) Surprise**: Gossamer Bio posted a Q4 loss of $0.15 per share, which was narrower than analysts' estimates of a $0.17 per share loss. This EPS surprise reflects better-than-expected profitability, contributing to the positive earnings surprise. 4. **Analyst Expectations**: Prior to the earnings release, analysts had been forecasting revenues of US$19 million and losses of US$0.71 per share in 2025. Gossamer Bio's performance exceeded these expectations, with revenues reaching $21 million and per-share losses reducing to US$0.69. In summary, Gossamer Bio's Q4 earnings surprise exceeded forecasts due to strong revenue outperformance, efficient expense management, a narrower-than-expected loss per share, and improved analyst expectations. These factors combined to deliver a robust earnings report that surpassed market forecasts.