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

Incyte's (INCY) Q4 earnings surprise had a negative impact on its annual EPS, but a positive effect on its annual revenue.

1. Impact on EPS: The Q4 EPS surprise of -0.08 resulted in a diluted EPS of $0.15 for the year. This indicates that the Q4 earnings miss had a significant negative effect on the company's annual EPS, as the EPS would have been higher without the Q4 shortfall.

2. Impact on Revenue: However, the Q4 earnings surprise had a positive impact on the company's annual revenue, with the total revenue for the year reaching $4.24 billion. This suggests that the revenue benefits from the Q4 earnings beat expectations outweighed the negative impact on EPS.
3. Market Impact: Historically, earnings beat expectations have had a positive impact on the market, with a maximum return of 2.95% observed following such events in the broader market This implies that while the impact on INCY's annual performance was positive, the overall market reaction to earnings beat expectations is generally favorable.