Sonos Earnings: What To Look For From SONO

Audio technology Sonos company (NASDAQ:SONO) will be reporting earnings tomorrow afternoon. Here’s what to expect.

Sonos beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $397.1 million, up 6.4% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ earnings and EBITDA estimates.

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 decline 17.7% year on year to $251.3 million, a further deceleration from the 3.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.18 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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5.6% on average.

Looking at Sonos’s peers in the consumer electronics segment, some have already reported their Q3 results, giving us a hint as to what we can expect. GoPro’s revenues decreased 12% year on year, beating analysts’ expectations by 1.5%, and Peloton reported a revenue decline of 1.6%, topping estimates by 2.5%. GoPro traded up 8.3% following the results while Peloton was also up 9.1%.

Read our full analysis of GoPro’s results here and Peloton’s results here.

There has been positive sentiment among investors in the consumer electronics segment, with share prices up 7.3% on average over the last month. Sonos is up 17.7% during the same time and is heading into earnings with an average analyst price target of $15.75 (compared to the current share price of $14.36).

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