The EPS expectations for fiscal year 2025 and 2026 have been raised by 20% and 36% respectively. Such a significant increase in EPS expectations directly lowered the valuation by one level, so even though the stock price surged by 22% cumulatively in the days following the earnings report, the forward P/E ratio for 2025 actually remained unchanged at 12.6 times. Therefore, the post-earnings surge is justified.

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