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 5.2% last quarter, reporting revenues of $550.9 million, down 10.1% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ 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 be flat year on year at $255.1 million, improving from the 16.9% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.16 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 3.7% on average.
Looking at Sonos’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Apple delivered year-on-year revenue growth of 5.1%, beating analysts’ expectations by 0.7%, and Hasbro reported revenues up 17.1%, topping estimates by 14.8%. Apple traded down 3.6% following the results while Hasbro was up 15.9%.
Read our full analysis of Apple’s results here and Hasbro’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 9.2% on average over the last month. Sonos is up 10.9% during the same time and is heading into earnings with an average analyst price target of $13.46 (compared to the current share price of $9.50).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
