What caused WKC's EPS surprises in 2024?

World Kinect Corporation (WKC) experienced an EPS surprise of $0.12 for the quarter ending December 31, 2024. This positive surprise indicates that the company's actual performance exceeded market expectations. The EPS for the same period was $1.13, which provides a benchmark for understanding the context of the surprise.

1. **Revenue Challenges and Gross Margin**: World Kinect faced difficulties in revenue growth over a three-month period, with a decline of approximately -18.68% as of December 31, 2024. This decrease in top-line earnings could contribute to lower EPS if not offset by cost management. Additionally, the company's gross margin stood at 2.65%, which is below the industry average, suggesting challenges in cost efficiency.
2. **Sector and Economic Factors**: As a player in the Oil, Gas & Consumable Fuels industry, World Kinect's performance is influenced by sector-specific factors and global economic conditions. The energy sector can be volatile, and external factors such as geopolitical tensions, commodity prices, and climate policies can impact profitability.

In summary, the EPS surprise for World Kinect in 2024 can be attributed to a combination of revenue challenges, gross margin, and sector-specific factors. The company's management should focus on strategies to improve revenue growth and enhance cost efficiency to sustain and enhance profitability in the future.