What caused KN's Q3 2024 EPS to drop sharply?

Knowles Corporation's (NYSE: KN) Q3 2024 EPS dropped sharply, influenced by several key factors:

1. **Revenue Decline in Medtech and Specialty Audio Segments**: Although the company's OSS segment reported a year-over-year growth of 8.3% and a sequential increase of 4.3% in overall revenue, the consolidated revenue experienced a significant year-over-year decline of 23.3%. This decline is primarily attributed to a reduction in revenue from a former media customer and a decrease in Bressner revenue.
2. **Under-Absorption of Production Capacity**: The company faced challenges in absorbing its production capacity, leading to a decrease in consolidated gross margin compared to the previous year. This issue, combined with the revenue decline, contributed to the net loss of $2.3 million reported in Q2 2024.
3. **Insider Transactions and Market Conditions**: The sale of shares by insiders, such as John Anderson, Senior Vice President & CFO, could signal a lack of confidence in the company's short-term prospects. Additionally, the broader market conditions, including economic challenges and concerns over interest rates, may have influenced investor sentiment and affected the stock price, which in turn impacted the company's financial performance.

In summary, Knowles' Q3 2024 EPS drop is primarily caused by a combination of revenue decline in certain segments, under-absorption of production capacity, and insider transactions.