Audio technology Sonos company (NASDAQ:SONO) will be announcing earnings results this Tuesday after the bell. Here’s what investors should know.
Sonos beat analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $287.9 million, up 12.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
Is Sonos a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Sonos’s revenue to decline 2.4% year on year to $537.5 million, improving from the 10.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.68 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sonos has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.2% on average.
Looking at Sonos’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Apple delivered year-on-year revenue growth of 15.7%, beating analysts’ expectations by 4.1%, and Deckers reported revenues up 7.1%, topping estimates by 4.7%. Apple’s stock price was unchanged after the resultswhile Deckers was up 19.2%.
Read our full analysis of Apple’s results here and Deckers’s results here.
Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. Sonos is down 21.5% during the same time and is heading into earnings with an average analyst price target of $19.13 (compared to the current share price of $14.35).
P.S. STOP buying the AI stocks everyone's talking about. The real money? It’s in the profitable pick nobody’s watching yet. We’ve identified an AI profit machine that’s flying under Wall Street’s radar—for now. We can’t keep this research public forever—grab your FREE copy before we pull it offline. GO HERE NOW.