Should traders be cautious about WDH's Q4 2024 EPS?

**Traders should exercise caution regarding Waterdrop's Q4 2024 EPS.** Here's why:

1. **EPS of $0**: Waterdrop's Q4 2024 diluted EPS was $0, which is a notable figure considering the company's historical performance and market expectations. This could indicate a potential downturn or a one-time event affecting profitability.

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|WDH|WDH.N|Waterdrop|2024 Q1|90.23031732157014|0.002769968|169|
|WDH|WDH.N|Waterdrop|2024 Q2|99.5624130614473|0.0027520916|169|
|WDH|WDH.N|Waterdrop|2024 Q3|211.9015127526787|0.0042749658|169|
|WDH|WDH.N|Waterdrop|2024 Q4|45.90235294242941|0.0041099832|169|

2. **Revenue Growth**: Despite the EPS concern, Waterdrop reported a net operating revenue of $687 million for Q4 2024, indicating a 4.2% year-over-year increase. This suggests that the company is growing its top line, which could be a positive sign for traders looking at the bigger picture.
3. **Profitability Trends**: Waterdrop has shown profitability for twelve consecutive quarters, with a net profit attributable to shareholders of $99.6 million in Q4 2024, marking a 68.7% year-over-year increase. This trend is positive, but the EPS of $0 in Q4 2024 raises questions about the quarter's profitability.
4. **Analyst Ratings and Price Targets**: UOB Kay Hian has given Waterdrop a "Buy" rating with a price target of $2.20, suggesting potential upside from the current price. Goldman Sachs also maintains a "Buy" rating with a price target of $1.80, indicating confidence in Waterdrop's future performance. These analyst ratings provide a positive outlook, but traders should consider the EPS figure in the context of the broader market conditions and Waterdrop's business strategy.
5. **Dividend and Share Buybacks**: Waterdrop has announced a cash dividend of $0.02 per ADS, reflecting its stable operations and significant profit increase. The company has also repurchased approximately 52.1 million ADSs from the open market, totaling approximately $100 million. These actions could be seen as positive signals by traders, indicating the company's commitment to shareholder value.

In conclusion, while Waterdrop's Q4 2024 EPS of $0 is a red flag, it is important to consider the company's overall financial health, growth prospects, and strategic initiatives. Traders should monitor the situation closely, considering both the risks and the potential opportunities presented by Waterdrop's financial results.