How did RDNT's Q4 earnings surprise investors?

RadNet's (RDNT) Q4 2024 earnings report surprised investors with both positive and negative elements:

1. **Positive Surprises**:
- **Revenue Growth**: RadNet reported a 13.5% increase in total revenue, reaching $477.1 million for the quarter, which exceeded market estimates.
- **Adjusted EBITDA**: The company's Adjusted EBITDA surged by 14% to $75 million, indicating strong operational performance.
- **Digital Health Segment Growth**: The Digital Health segment showed remarkable growth, with a 28.1% increase in revenue and a 61.6% rise in Adjusted EBITDA. This segment's performance highlights RadNet's strategic focus on digital health initiatives.
2. **Negative Surprises**:
- **Earnings Per Share (EPS)**: RadNet reported an EPS of $0.07 for the quarter, which fell short of the forecasted $0.20. This missed expectation contributed to a decline in stock price.
- **Guidance Concerns**: The company provided disappointing full-year 2025 revenue guidance, which fell below analysts' expectations. This guidance likely contributed to investor uncertainty and negative sentiment.
3. **Stock Reaction**: Following the earnings release, RadNet's stock experienced a decline, reflecting investor disappointment over the EPS miss and guidance concerns.

In conclusion, while RadNet's Q4 performance showcased strong revenue growth and improved profitability in certain segments, the EPS shortfall and cautious guidance for 2025 led to a mixed reaction from investors.