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

South State Bank's (SSB) Q4 earnings surprise had a notable impact on its annual performance, although the specific figures for the full year are not available. Here's how the Q4 performance influenced the annual outlook:

1. **Q4 EPS Surprise**: SSB reported an EPS surprise of -0.02 for Q4, which is a negative figure indicating that the bank's actual EPS fell short of market estimates. This suggests that SSB faced unexpected challenges or inefficiencies during the quarter that affected its profitability.

|code|Ticker|Name|Date|Diluted EPS (FY)|market_code|
|---|---|---|---|---|---|
|SSB|SSB.N|South State|2020|2.19|169|
|SSB|SSB.N|South State|2021|6.71|169|
|SSB|SSB.N|South State|2022|6.6|169|
|SSB|SSB.N|South State|2023|6.46|169|
|SSB|SSB.N|South State|2024|6.97|169|

2. **Annual EPS and Revenue Prospects**: Despite the Q4 setback, the average analyst price target for SSB stock is $111.56, suggesting a potential upside from the current trading price. This indicates that analysts are optimistic about SSB's future performance, possibly driven by factors such as its strong asset growth, strategic initiatives, and the expected onboarding of significant wealth management assets from Prudential Financial and Wintrust Financial by early 2025.
3. **Dividend and Shareholder Returns**: SSB is set to distribute a dividend of $0.54 per share, with a trailing yield of 2.2% based on the current stock price. The bank's dividend payments are supported by a comfortable payout ratio of 32% of profit, which is generally considered sustainable.
4. **Market Sentiment and Future Outlook**: UBS initiated coverage of SSB with a Buy recommendation, indicating confidence in the bank's prospects. Piper Sandler also raised its price target to $112, highlighting the potential for capital appreciation. These positive assessments suggest that despite the Q4 hiccup, SSB's strategic direction and growth opportunities could lead to improved annual performance in the coming years.

In conclusion, while SSB's Q4 earnings surprise was negative, the overall annual performance outlook appears promising, supported by factors such as expected asset contributions from major acquisitions, a stable dividend policy, and positive analyst sentiment.