Sonos Inc ( SONO Quick Quote SONO - Free Report) is scheduled to report fourth-quarter fiscal 2022 results on Nov 16. For the fiscal fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $302.5 million, indicating a year-over-year decline of 15.9%. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 43 cents per share, compared with earnings of 8 cents per share reported in the year ago quarter. The company’s earnings beat the Zacks Consensus Estimate in three out of the trailing four quarters, the average surprise being 34.7 %. Let’s see how things have shaped up for the upcoming announcement. Factors at Play
Softer consumer demand owing to the weakness prevailing over global macroeconomic conditions and rising inflation are likely to have affected Sonos’ fourth-quarter performance. Unfavorable forex movement and lingering supply chain issues resulting in increased component costs are likely to have been other headwinds.
Shifting consumer spending patterns has been compelling retail partners to right-size their inventory positions, which is likely to have negatively impacted Sonos’ performance. In the last reported quarter, the company slashed its 2022 outlook owing to the abovementioned factors. Sonos now expects revenues to increase 1-2% year over year in the range of $1.73-$1.755 billion. Earlier the company expected revenues to increase 14-16% year over year in the range of $1.95-$2 billion. Nonetheless, higher selling price is expected to have provided some cushioning to the fiscal fourth quarter performance. The company has been focused on its three strategic initiatives — expanding its brand, boosting its offerings and driving operational excellence. New product launches are likely to act as a tailwind. In September, Sonos announced the launch of its new speaker, Sub Mini, to further expand its home theater product line. The speaker is priced at $429. The Sub Mini features an acoustically sealed cabinet with woofers facing inward that creates a force-canceling effect, which reduces distortion and provides its users with an immersive audio experience. It can also be paired with the company’s existing line of home theater products like Beam or Ray. Steady traction witnessed for products such as Beam Gen 2, Roam, Ray, Arc, as well as partnerships with companies like Audi and IKEA is likely to have aided the company in the quarter under review. Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Sonos this time around. The combination of a positive
Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Sonos has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Stocks to Consider
Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Ross Stores ( ROST Quick Quote ROST - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank #3 currently. Ross Stores is scheduled to report earnings results on Nov 17. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Ross Stores’ to-be-reported quarter’s earnings per share and revenues is pegged at 80 cents per share and $4.36 billion, respectively. Shares of ROST have soared 15.9% in the past year. Macy’s ( M Quick Quote M - Free Report) has an Earnings ESP of +18.92% and a Zacks Rank of 3. Macy’s is set to announce quarterly figures on Nov 17. The Zacks Consensus Estimate for Macy’s to-be-reported quarter’s earnings and revenues is pegged at 19 cents per share and $5.17 billion, respectively. Macy’s surpassed earnings estimates in the preceding four quarters, the average surprise being 80.8%. Shares of Macy’s have lost 33.8% in the past year. Cisco ( CSCO Quick Quote CSCO - Free Report) has an Earnings ESP of +1.46% and a Zacks Rank #3 currently. CSCO is slated to release quarterly numbers on Nov 16. The Zacks Consensus Estimate for CSCO’s to-be-reported quarter’s earnings and revenues is pegged at 84 cents per share and $13.32 billion, respectively. Cisco surpassed earnings estimates in all the preceding four quarters, the average surprise being 1.8%. Shares of CSCO have lost 19.5% in the past year. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.