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Audio technology Sonos company (NASDAQ:SONO) will be reporting results tomorrow after market hours. Here’s what to expect.
Sonos beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $255.4 million, down 16.3% year on year. It was a satisfactory quarter for the company, with 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 decline 14.5% year on year to $523.9 million, a further deceleration from the 8.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 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 4.9% 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 4%, meeting analysts’ expectations, and VF Corp reported revenues up 1.9%, topping estimates by 1.2%. Apple’s stock price was unchanged after the results, while VF Corp was up 1.4%.
Read our full analysis of Apple’s results here and VF Corp’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 2.6% on average over the last month. Sonos is down 2.6% during the same time and is heading into earnings with an average analyst price target of $15.80 (compared to the current share price of $14.32).
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