How did ZD's Q4 earnings surprise impact annual performance?

Ziff Davis Inc.'s (ZD) Q4 earnings surprise had a significant impact on its annual performance, though the direct annual effects are not explicitly detailed in the provided data. However, we can infer annual consequences through the Q4 insights: 1. **Q4 Earnings Context**: - ZD’s Q4 EPS was $1.64, exceeding the consensus estimate of $1.48, marking a 10.81% earnings surprise. - Revenue for the quarter was $353.58 million, surpassing the estimate of $347.13 million, indicating a 1.70% revenue outperformance. 2. **Annual Performance Implications**: - **Earnings Growth**: Assuming a conservative estimate, if ZD maintained the average of its last four EPS estimates (Q3’s $1.18 and Q2’s $1.27, with Q4’s $1.64), the annual EPS would be approximately $1.36. This is a substantial improvement over the previous year’s EPS of $1.50. - **Revenue Growth**: With Q3 and Q4 exceeding expectations, annual revenue could reach around $1.4 billion, up from the previous year’s $340.99 million. - **Consistency and Variance**: ZD has shown inconsistent performance, with Q2’s revenue miss and Q3’s revenue outperformance. However, the recent positive momentum could signal improved annual revenue, despite past inconsistencies. 3. **Investor Considerations**: - **Future Expectations**: Investors should monitor upcoming earnings calls and estimates to gauge the sustainability of recent growth trends. - **Strategic Moves**: The acquisition of CNET and the launch of AI-driven products suggest a strategic shift that could positively influence annual performance if integrated effectively. - **Market Sentiment**: Despite underperformance year-to-date, positive Q3 results and the buy consensus suggest potential stock price recovery if underlying growth trends continue. In conclusion, ZD's Q4 earnings surprise sets a positive tone for its annual performance, assuming consistent growth into the new year. However, the full annual impact remains dependent on ongoing business performance and strategic execution.