Lets say there are experts in company X and the the industry that it operates the main part of its business. And lets say they expect that sales will increase by R% and earnings by E%.
Some people will factor that into their expectations for the company, and say if that trend continues for the next 5 years, the earnings with a similar P/E ratio will have the price of each share go up significantly during those years.
So they will make a decision to buy before the quarterly announcement. They will temporarily drive the P/E ratio to a higher number.
Then the quarterly numbers come in. Now the P/E seems out of whack, the Revenue isn't as strong. Those people who bought early now don't see it as an excellent long term investment, so they want to sell. The numbers miss some marks so new buyers aren't flocking to buy. The price of the stock drops.
This can happen in some cases if they make their numbers, because some portion of the market felt they would exceed them.
For long term investors this makes no difference the temporary ups and downs of short periods are meaningless.
Regarding the stated question
why would investors have negative perception of an increase in
earnings but a decrease in revenue when earnings seem to be what
Revenue growth is complex. Same store sales, new stores, all contribute to the health of the company. Free standing vs. malls vs. office parks. Some quarters expenses are different, which impact earnings. Experts look at all these numbers. If revenues aren't growing like some expect, that may mean that controlling costs is the only way to keep profits. But cutting costs can also impact revenue.
The drop you saw is due to the fact that they didn't make some numbers.