How did ADV's Q4 2024 earnings surprise investors?

Advantage Solutions Inc. (ADV) Q4 2024 earnings fell short of investor expectations, as reflected in the company's financial results that indicated a significant decline in earnings per share (EPS) and a slight increase in revenue.

1. **Earnings Per Share (EPS) Miss**: The actual EPS for Q4 2024 was -$0.58, which is a substantial decrease from the estimated EPS of $0.12. This indicates a significant negative surprise, as the company's performance was much weaker than anticipated.

2. **Revenue Beat Expectations**: However, the actual revenue for the quarter was $892.29 million, which was slightly higher than the estimated revenue of $863.55 million. This suggests that while the company's revenue exceeded expectations, the magnitude of the EPS miss overshadowed this positive aspect.
3. **Market Conditions and Segmental Performance**: Investors may have had concerns about the company's performance in a challenging consumer environment and the impact of macroeconomic factors on client demand. The decline in branded services revenue by 4% to $283 million and the navigation of a challenging consumer environment might have contributed to the negative surprise in earnings.
4. **Interest of Investors**: Investors are likely to be concerned about the company's short-term profitability and the potential impact on future earnings given the noted shift in timing of activities from the fourth quarter to the third quarter, which may affect future quarterly comparisons.

In summary, while Advantage Solutions Inc. experienced a slight revenue beat, the significant negative surprise came from the substantial decline in EPS, which reflects broader challenges and weaknesses in the company's performance during Q4 2024.