Audio technology Sonos company (NASDAQ: SONO) will be reporting results this Wednesday afternoon. Here’s what to look for.
Sonos beat analysts’ revenue expectations last quarter, reporting revenues of $281.5 million, up 8.4% year on year. It was a strong 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 for active Edge members.
This quarter, the market is expecting Sonos’s revenue to grow 6.2% year on year, a reversal from the 13.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Sonos has a history of exceeding Wall Street’s expectations.
Looking at Sonos’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AMC Entertainment delivered year-on-year revenue growth of 14.2%, beating analysts’ expectations by 8.7%, and Delta reported revenues up 18.7%, topping estimates by 3.9%. AMC Entertainment traded up 13.4% following the results while Delta was down 3.2%.
Read our full analysis of AMC Entertainment’s results here and Delta’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. Sonos is up 15% during the same time and is heading into earnings with an average analyst price target of $19.13 (compared to the current share price of $15.61).
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