Why Sonos Is Friday’s Big Earnings Winner
Sonos shares jumped early Friday after it released its fiscal fourth-quarter financial results after the markets closed on Thursday.
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When Sonos Inc. (NASDAQ: SONO) released its fiscal fourth-quarter financial results after the markets closed on Thursday, the company said that it had a net loss of $0.02 per share on $272.9 million in revenues. The consensus estimates had called for $248.9 million in revenue, and the same period of last year had a net loss of $0.26 per share and $214.10 million in revenue.
During the most recent quarter, the company sold 1,120,179 products, representing 47% growth year over year, and generated $273 million in revenue. This product growth translated into a 27% increase in revenue compared to the fourth quarter of last year.
In this year’s fourth quarter, the largest driver affecting year-over-year revenue growth was the launch of Beam, which led to a 119% increase in home theater speakers products sold and a 63% increase in home theater speakers revenue.
Wireless speakers products sold increased 35% due to the continued momentum of Sonos One. Despite the strong unit growth, wireless speaker revenue increased 4% as volume mix shifted.
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Looking ahead to the fiscal 2019 full year, the company expects to see revenue growth in the range of 10% to 12% and adjusted EBITDA growth in the range of 20% to 27%. Thomson Reuters is calling for $1.11 billion in revenue for the coming year.
CEO Patrick Spence commented:
We are very pleased with the progress we made in our first quarter as a public company. One of the drivers of our strong Q4 performance was Sonos Beam. The only smart speaker designed specifically for the living room, Beam is a soundbar, voice-enabled smart speaker and music speaker rolled into a welldesigned and immersive sound package. Beam exceeded our forecast, capturing the number 1 position by dollar share with 8% of the U.S. soundbar category in the third calendar quarter according to NPD, despite only being launched in mid-July.
Shares of Sonos were last seen up about 12% at $15.82 on Friday, in a 52-week range of $11.78 to $23.60. The consensus analyst price target is $22.83.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
