How did NEWT's Q4 earnings surprise impact investor confidence?

NewtekOne's (NEWT) Q4 earnings surprise had a positive impact on investor confidence, as evidenced by the following factors:

1. **Earnings Beat Expectations**: NEWT's Q4 earnings per share (EPS) exceeded market expectations, with the company reporting $0.45 per share, compared to the consensus estimate of $0.41 per share. This indicates that the company performed better than anticipated, which typically boosts investor confidence.
2. **Revenue Growth**: NEWT's revenue for the quarter ended September 2024, was $62.83 million, representing a year-over-year increase of 23.3%. This robust revenue growth suggests that the company is expanding its market presence and generating more income, which can be a positive signal to investors.
3. **Analyst Optimism**: Piper Sandler, a research firm, increased its price target for NEWT from $13.00 to $15.00, indicating a more positive outlook on the stock. This analyst action can influence investor sentiment, as it suggests that the stock may have room for growth.
4. **Recent Institutional Acquisition**: Marshall Wace LLP acquired 180,468 shares of NEWT, which could be seen as a vote of confidence from a reputable institutional investor. Such acquisitions can bolster investor confidence, as they may perceive the stock as undervalued or with potential for growth.

In conclusion, NEWT's Q4 earnings surprise, which included a beat on earnings and revenue growth, along with positive analyst actions and institutional acquisitions, likely contributed to increased investor confidence in the company.