Why did NEWT's Q2 earnings surprise fall sharply?

The Q2 earnings surprise for NewtekOne Inc. (NEWT) fell sharply primarily due to a significant decrease in revenue and earnings per share (EPS) compared to the previous quarter and analyst expectations. Here are the key reasons:

1. **Revenue Decline**: The revenue for Q2 2024 was $11.1 million, which is a substantial drop from the previous quarter's revenue of $14.5 million. This decline contributed significantly to the lower earnings surprise.
2. **Earnings Per Share (EPS) Decrease**: The EPS for Q2 2024 was $0.12, whereas the previous quarter's EPS was $0.41. This significant drop in EPS further contributed to the lower earnings surprise.
3. **Analyst Expectations**: Analysts had expected NEWT to post earnings of $0.41 per share for the quarter, but the actual EPS was $0.12, which is a far cry from expectations. This discrepancy led to a sharp fall in the earnings surprise.

In summary, the sharp fall in NEWT's Q2 earnings surprise can be attributed to a combination of a significant revenue decline and a substantial decrease in EPS compared to the previous quarter and analyst expectations.