How did ZION's Q4 2024 earnings surprise impact investor sentiment?

Zions Bancorporation (ZION) reported a net income of $216 million for Q4 2024, with an EPS surprise of $0.08, which represents a 9.1% increase from the same period the previous year. Despite the positive earnings surprise, investor sentiment remained cautious, as reflected in the following:

1. **Stock Performance**: Following the earnings release, ZION's stock price fell by 1.11% to $42. This decline suggests that while the earnings surprise was positive, it may not have been enough to significantly boost investor confidence in the immediate term.

|code|Ticker|Name|Date|Net Income|market_code|
|---|---|---|---|---|---|
|ZION|ZION.O|Zions Bancorporation|2024 Q1|1.53E8|185|
|ZION|ZION.O|Zions Bancorporation|2024 Q2|2.01E8|185|
|ZION|ZION.O|Zions Bancorporation|2024 Q3|2.14E8|185|
|ZION|ZION.O|Zions Bancorporation|2024 Q4|2.16E8|185|

2. **Analyst Ratings**: Recent analyst ratings have been mixed, with some adjustments to price targets but no significant changes in ratings. For instance, DA Davidson analyst P. Winter anticipates earnings of $1.25 per share for Q4 2024, which is slightly below the actual EPS of $1.37 reported. This could indicate that while the earnings surprise was positive, analysts may have had concerns about the sustainability of the results or other factors influencing their views.
3. **Market Beat**: The consensus EPS estimate for Q4 2024 had been revised 0.15% lower over the last 30 days, indicating a potential decrease in investor confidence or a more cautious outlook. This revision trend suggests that while the earnings surprise was positive, it may not have led to a significant increase in investor optimism.
4. **Broader Market Reaction**: The broader market's reaction to ZION's earnings report is also indicative of the overall sentiment. The S&P 500 gained about 23% since the beginning of the year, which is a significant increase. However, ZION shares have underperformed the market, increasing by only 16.8% during the same period. This underperformance could be a result of various factors, including investor sentiment towards ZION's earnings report.

In conclusion, while ZION's Q4 2024 earnings surprise was positive, it did not appear to significantly boost investor sentiment. The stock price decline following the earnings release, along with mixed analyst ratings and a cautious market reaction, suggest that investors may be awaiting more clarity on the bank's future performance or are concerned about other aspects of the business.