Why did SCL's Q4 2024 earnings surprise positively?

Stepan Company's (SCL) Q4 2024 earnings surprise positively due to **higher net income** and **increased global sales volume** despite a **decline in adjusted net income**.

1. **Net Income Improvement**: The company reported a net income of $3.4 million for Q4 2024, a significant improvement from the $1.2 million net loss in the prior year. This indicates a turnaround in financial performance, which positively contributed to the earnings surprise.
2. **Global Sales Volume Increase**: Stepan Company reported an increase in global sales volume, which was up 1% year-over-year. This suggests growing demand for the company's products, which is a positive indicator for earnings.
3. **Cost Out Savings**: The Company delivered $13.0 million in pre-tax cost out savings in the fourth quarter of 2024. Such cost management efforts can significantly impact the bottom line, contributing to the positive earnings surprise.

Despite these positive factors, the company experienced a **73.33% EPS surprise**, which could be attributed to various factors including market conditions, company-specific initiatives, or industry trends. However, the net income improvement, increase in global sales volume, and cost out savings are primary reasons for the positive earnings surprise in Q4 2024.