Shares of Telefonica Brasil SA (NYSE:VIV) took a sharp dive on Friday, plummeting 5.02% in intraday trading, despite the company reporting better-than-expected earnings for the third quarter. The dramatic downturn highlights investor concerns over the company's revenue performance and potential growth outlook.

Telefonica Brasil announced quarterly earnings of $0.22 per share, surpassing analyst consensus estimates of $0.19 by an impressive 15.79%. This represents a solid 22.22% increase from the $0.18 per share reported in the same period last year. However, the positive earnings surprise was overshadowed by disappointing sales figures.

The telecom giant reported quarterly sales of $2.744 billion, falling short of the analyst consensus estimate of $2.780 billion by 1.29%. Although this figure still represents an 8.42% increase over the $2.531 billion in sales from the same period last year, the miss appears to have spooked investors. The market's severe reaction suggests that expectations were set higher, or there may be underlying concerns about the company's ability to maintain growth in an increasingly competitive Brazilian telecom market.