What caused MTUS's EPS surprises in 2024?

Metallus Inc. (MTUS) experienced an EPS surprise of -0.08 for the fourth quarter of 2024, which represents a decrease of 5.93% from the previous year. The company's EPS has been under pressure due to several factors: 1. **Revenue Decline**: Metallus faced a significant revenue decline, with a 17% drop in the second quarter and a 36% decrease in the third quarter compared to the previous year's corresponding quarters. This decline in sales is a primary contributor to the negative EPS surprise. 2. **Profit Margin Compression**: The company's profit margin suffered, with a substantial drop from 8.1% in the second quarter of 2023 to 1.6% in the same period of 2024. This compression of profit margins, combined with declining revenues, has a direct impact on the EPS. 3. **Net Income Fluctuations**: Metallus reported a net loss in the third quarter of 2024, which was a significant change from the profit of $24.8 million recorded in the same quarter of the previous year. The fluctuating net income figures contribute to the overall EPS surprise. In summary, the EPS surprise for Metallus in 2024 can be attributed to a combination of declining revenues, profit margin compression, and fluctuating net income. These factors, cumulatively, have put pressure on the company's earnings, leading to a negative EPS surprise for the fourth quarter.