How did XOMA's Q1 2024 EPS outperform forecasts?

XOMA's Q1 2024 EPS outperformed forecasts due to several key factors:

1. **Strong Cash Position**: XOMA's robust cash position, with $159.6 million in cash and cash equivalents as of December 31, 2023, is a significant increase from the $57.8 million at the end of 2022. This financial strength supports the company's operations and strategic initiatives, contributing to better-than-expected earnings.
2. **Royalty Interests**: The company's royalty interests generated cash payments of $7.3 million. This consistent revenue stream, coupled with the achievement of certain development milestones, has likely contributed to the positive EPS surprise.
3. **Non-Dilutive Financing**: XOMA raised up to $140 million in non-dilutive non-recourse capital through a royalty-backed loan. This strategic financing has likely enhanced the company's financial performance, allowing for greater investments and potential for higher earnings.
4. **Share Repurchase Program**: The board's authorization of a share repurchase program to buy back up to $50 million of shares may have positively impacted EPS by reducing the number of shares outstanding, thereby increasing diluted EPS.

In conclusion, XOMA's Q1 2024 EPS outperformance can be attributed to a combination of its strong cash position, successful royalty-based financing, and strategic share repurchases. These factors, coupled with the company's financial discipline and growth initiatives, have collectively contributed to an EPS surprise.