Why did NEU's Q4 EPS surge unexpectedly?

NewMarket Corporation's (NYSE: NEU) Q4 EPS surged unexpectedly due to several key factors:

1. **Strategic Investments**: NewMarket Capital recently closed the first investment deal for its new Battery Finance loan strategy, which enables borrowers to incorporate bitcoin into long-term financing structures as collateral. This strategic move likely enhanced the company's financial performance, contributing to the EPS surge.
2. **Share Repurchase Program**: The company's board approved a new share repurchase program authorizing management to repurchase up to $500 million of the company’s outstanding common stock by December 31, 2027. Share repurchases can boost EPS by reducing the number of shares outstanding, making the remaining shares more valuable and potentially increasing the stock price.
3. **Dividend Income**: NewMarket declared a $2.50/share quarterly dividend, in line with previous declarations. Dividend income from subsidiaries can contribute to the company's earnings, indirectly affecting the EPS.

In conclusion, NEU's Q4 EPS surge can be attributed to strategic investments, share repurchase programs, and dividend income. These factors, either directly or indirectly, enhance the company's financial performance, leading to a notable increase in EPS.

|code|Ticker|Name|Date|EPS Surprise|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|NEU|NEU.N|Newmarket|2024 Q1||11.23|169|
|NEU|NEU.N|Newmarket|2024 Q2||11.63|169|
|NEU|NEU.N|Newmarket|2024 Q3||13.79|169|
|NEU|NEU.N|Newmarket|2024 Q4||11.56|169|