How did CVV's Q3 earnings surprise investors in 2024?

CVD Equipment Corp (CVV) did not experience a positive earnings surprise in Q3 2024, as the company's financial performance in that quarter was not impressive enough to exceed market expectations.

1. **Challenging Market Conditions**: CVV faced difficulties in the silicon carbide market due to global overcapacity and declining wafer prices. These factors negatively impacted potential orders and tightened profit margins, despite revenue growth.
2. **Non-Cash Charge Impact**: A non-cash charge of $1.3 million was recognized to reduce the net realizable value of PVT150 inventory, which affected the gross profit margin. This charge reflected the company's efforts to manage inventory valuation, but it also indicated the ongoing challenges in the silicon carbide segment.
3. **Geopolitical Risks**: The geopolitical environment posed risks to the supply chain, and there was a concern that potential tariffs could increase component costs. These uncertainties could have contributed to investor concerns about the company's future prospects.

In conclusion, CVV's Q3 2024 earnings did not surprise investors positively due to challenging market conditions, the impact of non-cash charges on profitability, and geopolitical risks.