Why did ZEO's EPS stagnate in Q4 2021?
4/10/2025 02:20pm
The EPS of ZEO did not provide financial results for Q4 2021. However, based on the available data, it is evident that GEO's EPS was below expectation in Q4 2021. GEO's adjusted EPS for Q4 2021 was 13 cents, which fell short of the consensus of 22 cents. This indicates that the company's earnings were lower than anticipated by the market. The lower-than-expected EPS can be attributed to several factors, including:
1. **Decrease in Adjusted EBITDA**: The company's Adjusted EBITDA declined to $108.0 million from $129.0 million in the same quarter of the previous year. This reduction in EBITDA likely contributed to the lower EPS.
2. **Higher General and Administrative Expenses**: The company incurred elevated general and administrative expenses during the quarter, which were partly due to management team reorganization and additional professional fees related to preparing for future growth initiatives. These increased expenses would have impacted the net income and, consequently, the EPS.
In conclusion, ZEO's EPS stagnate in Q4 2021 due to the decrease in Adjusted EBITDA and higher general and administrative expenses.