How did FNWD's Q4 earnings surprise impact its annual performance?

Broadcom's (AVGO) Q4 earnings surprise had a significant impact on its annual performance, highlighting the company's strong financial health and growth prospects despite some challenges.

1. **Earnings Surprise and Impact on Annual Performance**:
- Broadcom reported an earnings per share (EPS) of $1.42 for Q4 2024, surpassing the forecasted $1.39. This beat by $0.03 represents a 2.16% surprise, indicating robust profitability for the quarter.
- The revenue for the quarter was $14.1 billion, slightly below the anticipated $14.07 billion, which was a miss of approximately 1.42%. This slight shortfall did not overshadow the overall growth narrative.
- The annual net income for FY 2024 was $6,965 million for Q4, reflecting a strong annual performance bolstered by the successful integration of VMware and significant year-over-year revenue growth.

2. **Revenue Growth and Segment Performance**:
- Broadcom's revenue grew by 51% year-over-year, reaching $51.6 billion in FY 2024, driven primarily by the expansion of its AI segment, which saw revenue increase to $12.2 billion.
- The company's AI revenue surged by 220% compared to the previous fiscal year, demonstrating the strong traction of its AI products and services.
3. **Return on Equity (ROE) and Earnings Per Share (EPS)**:
- The company's ROE stood at a healthy 26.9%, indicating efficient use of shareholders' equity to generate profits.
- The diluted EPS for the year was $1.42, up from the previous year's $1.39, reflecting improved profitability over the annual period.
4. **Cash Flow and Dividend**:
- Broadcom generated $5.5 billion in free cash flow, representing 39% of revenue, showcasing strong liquidity and financial health.
- The company announced a quarterly dividend of $0.59 per share, an 11% increase from the previous quarter, marking Broadcom's commitment to returning value to shareholders.
5. **Market Reaction and Outlook**:
- Despite the earnings beat, Broadcom's stock experienced a dip, which may reflect broader market conditions or investor concerns.
- Looking ahead, Broadcom projects Q1 FY 2025 revenue to reach $14.6 billion, marking a 22% increase year-over-year, suggesting continued growth momentum.

In conclusion, Broadcom's Q4 earnings surprise had a positive ripple effect on its annual performance, underscored by strong revenue growth, operational efficiency, and a robust dividend policy. While a slight revenue miss in Q4 provided some cautionary notes, the company's overall trajectory remains bullish, with expectations of sustained growth in the upcoming year.