How did AFYA's Q3 earnings surprise impact investor confidence?

Afya's Q3 earnings surprise had a positive impact on investor confidence, as evidenced by several key indicators:

1. **Earnings Performance**: Afya reported earnings per share (EPS) of $0.44, surpassing the Zacks Consensus Estimate of $0.37. This represents a significant earnings surprise of 18.92%. The company has a track record of surpassing consensus EPS estimates, having done so three times over the last four quarters.

2. **Revenue Outperformance**: Afya's revenue for the quarter was $155.4 million, exceeding the Zacks Consensus Estimate by 2.35%. This is a notable achievement, considering the company has topped consensus revenue estimates four times over the last four quarters.
3. **Stock Price Movement**: Despite underperforming the market so far in the year, Afya's stock experienced a positive movement post-earnings. The company's shares had risen by 0.6% in the quarter following the earnings release. This suggests that investors may be regaining confidence in the stock's potential for growth.
4. **Analyst Ratings and Price Targets**: The overall analyst sentiment remains positive, with an average consensus recommendation of "buy" and a price target of $22.00. This indicates that analysts are optimistic about Afya's future performance, which could bolster investor confidence.
5. **Institutional Investor Activity**: Institutional investors have shown interest in Afya, with several recent transactions indicating a belief in the company's potential. For instance, DekaBank Deutsche Girozentrale lowered its holdings, but other institutional investors, such as Dodge & Cox and Campbell & CO Investment Adviser LLC, have increased their stakes.

In conclusion, Afya's Q3 earnings surprise, which included a significant earnings beat and revenue outperformance, likely contributed to a boost in investor confidence. This is supported by the positive stock price movement and the continued optimism of analysts, as reflected in the price targets and recommendations. Additionally, the interest from institutional investors further underscores the positive sentiment surrounding Afya.