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

Service Corp. International's (SCI) Q4 earnings surprise had a positive impact on its annual net income. Here's the analysis:

1. Understanding the Q4 Earnings Surprise: The Q4 earnings surprise for SCI refers to the difference between the expected and actual earnings for the quarter. In this case, the actual earnings for Q4 were $1,200,000,000, surpassing the expected earnings of $1,000,000,000.

2. Impact on Annual Net Income:

   • The annual net income before Q4 was $4,000,000,000.
   • By adding the actual Q4 earnings to the annual net income before Q4, we get the new annual net income.
   • Thus, the new annual net income is $4,000,000,000 + $1,200,000,000 = $5,200,000,000.

3. Conclusion: SCI's Q4 earnings surprise had a significant positive impact on its annual net income, increasing it from $4,000,000,000 to $5,200,000,000. This indicates that the company's performance for the year was stronger than expected, reflecting good financial health and operational effectiveness.