How did BWFG's Q1 2024 EPS outperform forecasts?

Bankwell Financial Group's (BWFG) Q1 2024 EPS outperformed forecasts in terms of revenue exceeding expectations, but fell short in terms of EPS, as detailed below:

1. **Revenue Performance**: BWFG's revenue for Q1 2024 totaled $18.4 million, which beat analyst estimates. This revenue exceeded expectations by 6.3%, indicating a robust business segment performance.
2. **Earnings Per Share (EPS) Analysis**: The reported EPS for Q1 2024 was $0.48, which was a significant decrease from the previous year's $1.34. This year's EPS missed analyst estimates by 33%. Analysts had forecasted an EPS of $0.72, but BWFG reported $0.48, which is a clear underperformance in terms of EPS.

|code|Ticker|Name|Date|EPS Surprise|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|BWFG|BWFG.O|Bankwell Financial|2023 Q2|0.16|1.02|185|
|BWFG|BWFG.O|Bankwell Financial|2023 Q3|0.32|1.25|185|
|BWFG|BWFG.O|Bankwell Financial|2023 Q4|0.22|1.09|185|
|BWFG|BWFG.O|Bankwell Financial|2024 Q1|-0.24|0.48|185|

3. **Net Income Impact**: BWFG's net income for Q1 2024 was reported at $3.66 million, which, although it reflected a 64% decrease from the previous year, still indicated a level of profitability. However, this fell significantly short of the estimated net income of $5.55 million.
4. **Challenges and Factors**: BWFG faced several challenges, including a substantial decrease in profit margin from 39% to 20%, primarily due to lower revenue. There was also a notable charge-off related to non-performing loans, which impacted net income. Additionally, the company experienced a decline in loan portfolio and deposits.

In conclusion, while BWFG's Q1 2024 revenue exceeded expectations, the EPS fell below forecasts due to various internal and external factors. The bank's management needs to address the challenges affecting profitability to improve future EPS and net income.