Audio technology Sonos company (NASDAQ:SONO) will be announcing earnings results tomorrow after market hours. Here's what investors should know.
Sonos beat analysts' revenue expectations by 2.1% last quarter, reporting revenues of $252.7 million, down 16.9% year on year. It was a weaker quarter for the company, with a miss of analysts' earnings estimates and full-year revenue guidance missing analysts' expectations.
Is Sonos a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Sonos's revenue to grow 4.8% year on year to $391.2 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sonos has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 3.9% on average.
Looking at Sonos's peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Hasbro's revenues decreased 17.7% year on year, beating analysts' expectations by 5.5%, and Mattel reported flat revenue, falling short of estimates by 1.8%. Hasbro traded up 7.4% following the results while Mattel was also up 9.7%.
Read our full analysis of Hasbro's results here and Mattel's results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Sonos is down 18.7% during the same time and is heading into earnings with an average analyst price target of $23 (compared to the current share price of $11.9).
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