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Sonos (SONO) to Report Q4 Earnings: Is a Beat in the Offing?
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Sonos, Inc. (SONO - Free Report) is scheduled to report its fourth-quarter fiscal 2021 results on Nov 17, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 258.8%, surpassing the Zacks Consensus Estimate by 44 cents.
In the fiscal fourth quarter, the Santa Barbara, CA-based company is expected to have recorded higher revenues on a year-over-year basis as a result of robust demand for its products across all segments and regions. A favorable product mix along with continued execution on operational effectiveness initiatives might have enhanced its profitability.
This sound experience company remains focused on three strategic initiatives — the expansion of its brand, boosting its offerings, and driving operational excellence. Apart from a solid demand environment, Sonos is likely to have benefited from the resiliency of its business model. A continued increase in audio content consumption is expected to aid Sonos further.
Factors at Play
During the quarter, Sonos inked a multi-faceted partnership with outdoor sports gear brand, The North Face, to launch a station on Sonos Radio — Never Stop Exploring. The entities intend to unlock a whole new way to experience some of the most epic expeditions and natural landscapes. The collaboration was followed by the addition of Sonos Roam, an ultra-portable smart speaker.
Further, Sonos had entered into a multi-year agreement with a professional football club, Liverpool FC. As the club’s official sound partner, the consumer electronics company was responsible for creating immersive sound experiences within the Anfield football stadium, focusing on internal lounges and player areas, as well as the AXA Training Centre. In fact, the alliance marks Sonos’ first-ever sports team partnership.
In the fourth quarter of fiscal 2021, Sonos had unveiled an avant-garde, compact smart soundbar to take the entertainment quotient a notch higher. Dubbed Beam (Gen 2), the soundbar looks nearly identical to its predecessor and is equipped with Dolby’s Atmos technology that provides a richer, immersive listening experience for movies, TV, and music. The Beam (Gen 2) has a sleek design with a perforated polycarbonate grille instead of the cloth front found on the original Beam.
The soundbar upgrades the fidelity and depth of audio with the highest clarity. It boasts a hassle-free installation supported by seamless sync with the Sonos App, Apple AirPlay 2, music service apps, and TV remote. It is compatible with more than 100 streaming services in the Sonos app. The move is likely to boost the demand for Sonos’ high-end speakers in the growing global audio market, thereby providing a competitive edge over its rivals. All these developments are likely to have had a favorable impact on Sonos’ fiscal fourth-quarter revenues.
The Zacks Consensus Estimate for total revenues for the quarter is pegged at $352 million, suggesting an increase from the year-earlier reported figure of $340 million. The consensus mark for earnings per share is currently pegged at a loss of 7 cents. This indicates a drastic decline from earnings of 15 cents reported in the year-earlier quarter.
Earnings Whispers
Our proven model predicts an earnings beat for Sonos this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is exactly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +200.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Sonos currently sports a Zacks Rank #1.
Other Stocks to Consider
Here are some other companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Macy’s has a long-term earnings growth expectation of 12%. Its shares have surged 279.8% in the past year. The company delivered a trailing four-quarter earnings surprise of 269.8%, on average.
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) has an Earnings ESP of +10.89% and a Zacks Rank of 2. The company is set to report third-quarter 2021 results on Nov 18.
BJ's Wholesale Club has a long-term earnings growth expectation of 8.42%. Its shares have returned 48.4% in the past year. The company delivered a trailing four-quarter earnings surprise of 25.6%, on average.
Lowe's Companies, Inc. (LOW - Free Report) is scheduled to release third-quarter 2021 results on Nov 17. The company has an Earnings ESP of +5.71% and carries a Zacks Rank #2, at present.
Lowe’s has a long-term earnings growth expectation of 14.2%. Its shares have gained 45.9% in the past year. The company delivered a trailing four-quarter earnings surprise of 10.1%, on average.
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Sonos (SONO) to Report Q4 Earnings: Is a Beat in the Offing?
Sonos, Inc. (SONO - Free Report) is scheduled to report its fourth-quarter fiscal 2021 results on Nov 17, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 258.8%, surpassing the Zacks Consensus Estimate by 44 cents.
In the fiscal fourth quarter, the Santa Barbara, CA-based company is expected to have recorded higher revenues on a year-over-year basis as a result of robust demand for its products across all segments and regions. A favorable product mix along with continued execution on operational effectiveness initiatives might have enhanced its profitability.
This sound experience company remains focused on three strategic initiatives — the expansion of its brand, boosting its offerings, and driving operational excellence. Apart from a solid demand environment, Sonos is likely to have benefited from the resiliency of its business model. A continued increase in audio content consumption is expected to aid Sonos further.
Factors at Play
During the quarter, Sonos inked a multi-faceted partnership with outdoor sports gear brand, The North Face, to launch a station on Sonos Radio — Never Stop Exploring. The entities intend to unlock a whole new way to experience some of the most epic expeditions and natural landscapes. The collaboration was followed by the addition of Sonos Roam, an ultra-portable smart speaker.
Further, Sonos had entered into a multi-year agreement with a professional football club, Liverpool FC. As the club’s official sound partner, the consumer electronics company was responsible for creating immersive sound experiences within the Anfield football stadium, focusing on internal lounges and player areas, as well as the AXA Training Centre. In fact, the alliance marks Sonos’ first-ever sports team partnership.
In the fourth quarter of fiscal 2021, Sonos had unveiled an avant-garde, compact smart soundbar to take the entertainment quotient a notch higher. Dubbed Beam (Gen 2), the soundbar looks nearly identical to its predecessor and is equipped with Dolby’s Atmos technology that provides a richer, immersive listening experience for movies, TV, and music. The Beam (Gen 2) has a sleek design with a perforated polycarbonate grille instead of the cloth front found on the original Beam.
The soundbar upgrades the fidelity and depth of audio with the highest clarity. It boasts a hassle-free installation supported by seamless sync with the Sonos App, Apple AirPlay 2, music service apps, and TV remote. It is compatible with more than 100 streaming services in the Sonos app. The move is likely to boost the demand for Sonos’ high-end speakers in the growing global audio market, thereby providing a competitive edge over its rivals. All these developments are likely to have had a favorable impact on Sonos’ fiscal fourth-quarter revenues.
The Zacks Consensus Estimate for total revenues for the quarter is pegged at $352 million, suggesting an increase from the year-earlier reported figure of $340 million. The consensus mark for earnings per share is currently pegged at a loss of 7 cents. This indicates a drastic decline from earnings of 15 cents reported in the year-earlier quarter.
Earnings Whispers
Our proven model predicts an earnings beat for Sonos this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is exactly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +200.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Sonos, Inc. Price and EPS Surprise
Sonos, Inc. price-eps-surprise | Sonos, Inc. Quote
Zacks Rank: Sonos currently sports a Zacks Rank #1.
Other Stocks to Consider
Here are some other companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Macy's, Inc. (M - Free Report) is slated to release third-quarter 2021 results on Nov 18. It has an Earnings ESP of +9.77% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Macy’s has a long-term earnings growth expectation of 12%. Its shares have surged 279.8% in the past year. The company delivered a trailing four-quarter earnings surprise of 269.8%, on average.
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) has an Earnings ESP of +10.89% and a Zacks Rank of 2. The company is set to report third-quarter 2021 results on Nov 18.
BJ's Wholesale Club has a long-term earnings growth expectation of 8.42%. Its shares have returned 48.4% in the past year. The company delivered a trailing four-quarter earnings surprise of 25.6%, on average.
Lowe's Companies, Inc. (LOW - Free Report) is scheduled to release third-quarter 2021 results on Nov 17. The company has an Earnings ESP of +5.71% and carries a Zacks Rank #2, at present.
Lowe’s has a long-term earnings growth expectation of 14.2%. Its shares have gained 45.9% in the past year. The company delivered a trailing four-quarter earnings surprise of 10.1%, on average.