SONO - Sonos rallies amid quarterly results updated forecasts

2023-08-09 16:20:16 ET

Sonos ( NASDAQ: SONO ) jumped 11% after the close on Wednesday as the company reported earnings and an updated outlook for the year.

For the fiscal third quarter, the company reported non-GAAP EPS of $0.16, which beat the average analyst estimate by $0.23. Revenue of $373.4M beat by $38M.

The company forecast annual revenue in the range of $1.64B to $1.66B versus the consensus of $1.64B and compared to a prior outlook range of $1.625B to $1.675B. Gross margin is expected in the range of 44% to 44.2%, compared to prior outlook range of 44.3% to 44.8%.

Adjusted EBITDA should total between $148M and $158M, compared to prior outlook range of $138M to $168M. Adjusted EBITDA margin should be between 9.0% and 9.5%, compared to prior outlook range of 8.5% to 10%

“Despite the challenging environment, we are winning in the market and I’m proud of our team’s execution as we outperform the competition. We remain on track to deliver against our fiscal 2023 guidance,” Chief Executive Officer Patrick Spence said in a statement.

“While we have not yet seen conditions in our categories return to normal, we remain focused on ensuring Sonos can emerge from this period in a position of strength: we are profitable, we are debt free, and we have a huge market opportunity.

In June, Sonos ( SONO ) announced it would lay off 7% of its workforce and would further reduce its real estate footprint and re-evaluating certain program spending. The company has been trying to rightsize its cost base while still investing in its product roadmap to drive future growth.

In May, shares tanked after the company’s revenue forecast came in below the consensus estimate.

SONO is down 29% in the past 12 months.

More on Sonos:

• Sonos: A Great Value Play If Some Key Issues Are Resolved Quickly
• Sonos cuts 7% of its workforce and commits to lower real estate footprint
• Sonos, Inc. ( SONO ) Q2 2023 Earnings Call Transcript

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