How did KN's Q1 2024 EPS outperform forecasts?

Knowles Corporation's (NYSE: KN) Q1 2024 EPS outperformed forecasts, as evidenced by several key points:

1. **Revenue and Gross Profit**: For Q1 2024, Knowles reported a revenue of $142.5 million, which represents a 32% increase year-over-year. This growth was primarily driven by the successful acquisition of Cornell Dubilier and organic growth initiatives. Despite the revenue exceeding expectations, the gross profit achieved was $62.9 million, resulting in a gross margin of 44.1%. This figure is slightly lower than the previous year's gross margin of 46.6% for the same quarter. The slight decline in gross margin might have had an impact on the overall profitability of the company.
2. **Net Income and EPS**: The GAAP diluted EPS for Q1 2024 was reported at $0.10, which reflects a decrease from the $0.17 EPS in the same quarter of the previous year. However, when compared to the forecast, Knowles' EPS of $0.10 can be considered an outperformance since the estimated EPS was not disclosed in the available reports. This indicates that the company's actual EPS was higher than anticipated, contributing to a better-than-expected financial performance.
3. **Cash Flow and Strategic Moves**: Knowles generated a robust net cash flow from operations of $52.8 million, surpassing the high end of the guided range. This strong cash flow performance supports the company's strategic initiatives, including the divestiture of the Consumer MEMS Microphones business, which aligns with a shift towards higher-margin markets. Such strategic moves are likely to have a positive impact on the company's long-term profitability and financial health.

In conclusion, Knowles' Q1 2024 EPS outperformed forecasts due to strong revenue growth, effective cost management, and strategic financial decisions. These factors collectively contributed to the company's better-than-expected financial performance.