SONO - Sonos: Wait For The Second Half Story To Unfold

2024-05-08 23:24:07 ET

Summary

• Sonos stock fell over 5% after reporting Q2 results, with declining top line and increased R&D spending hurting margins and profitability.
• Sonos is expected to unveil a new product category, rumored to be premium headphones, in Q3, expanding its market reach.
• Despite short-term earnings disappointment, Sonos remains a strong brand in a large market, with continuous innovation and aggressive long-term targets.

So far this quarter, earnings disappointments have tallied up in the tech sector, and the environment is even less forgiving for hardware vendors. Sonos ( SONO ), the maker of premium home audio products, fell more than 5% after reporting Q2 results. While the company marginally beat top-line expectations, relatively flat y/y spending (particularly with increased investment in R&D) overcame a sharply declining top line, hurting margins and profitability....

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