Root, Inc. (NASDAQ: ROOT), a tech-driven insurance company, experienced a remarkable 24.61% surge in its stock price during the trading session on Thursday. This substantial upswing can be attributed to the company's stellar fourth-quarter and full-year 2024 financial performance, as well as its promising growth outlook.
The company announced its fourth-quarter results in the post-market hours on Wednesday, revealing a $1.62 earnings per share (EPS), marking a significant outperformance compared to analysts' expectations of a loss of $0.44 per share. Additionally, Root's fourth-quarter revenue of $326.7 million exceeded the consensus estimate of $291 million, reflecting the company's robust growth trajectory.
Notably, Root achieved positive net income for the second consecutive quarter and marked a full-year net profit of $31 million, representing a substantial improvement of $178 million over the previous fiscal year. The company attributed its success to strategic decisions made in 2022 and 2023, paving the way for what it dubbed a "landmark year" in 2024.
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