How did MATV's Q1 2024 earnings surprise the market?

Mativ Holdings Inc (MATV) experienced a notable year-over-year decline in earnings and revenues in Q1 2024, which was largely expected by the market. Here are the key details:

1. **Earnings Per Share (EPS) and Revenue**: MATV's estimated EPS for Q1 2024 was $0.2, which matches the reported EPS, indicating no surprise in earnings. However, the estimated revenue was $492 million, slightly below the reported revenue of $498.5 million. This discrepancy of $6.5 million could be considered a minor negative surprise.

2. **Market Expectations and Performance**: Prior to the earnings release, the market had anticipated a more significant decline in earnings and revenues. MATV was expected to deliver an EPS of $0.16 for Q1 2024, which would represent a year-over-year change of -71.4%. The company's performance, with an EPS of $0.2, actually exceeded market expectations.
3. **Revenue Comparison**: While the revenue missed estimate by $6.5 million, this was a relatively small deviation considering the overall revenue base. The company's sales fell by 13.7% year-over-year, which reflected lower volumes. This decline in volume was due to challenging macro-environment and customer de-stocking effects, which the company acknowledged.
4. **Stock Reaction**: Despite the revenue miss and decline in earnings, MATV's stock reacted positively, jumping by 30% following the announcement of cost-saving measures, including divesting assets and restructuring. The market seemed to reward the company's strategic initiatives.

In conclusion, while MATV's Q1 2024 earnings did not meet all market expectations, the company's performance was better than anticipated, and the stock reacted positively to the news of cost-saving measures. The slight revenue miss and decline in earnings were likely overshadowed by the market's optimism regarding the company's strategic shifts.