We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sonos (SONO) Q4 Earnings & Revenues Miss Estimates, Fall Y/Y
Read MoreHide Full Article
Sonos, Inc (SONO - Free Report) reported fourth-quarter fiscal 2023 non-GAAP loss per share of 7 cents compared with 30 cents in the prior-year quarter. On a GAAP basis, the company reported a loss of 25 cents against the earnings per share (EPS) of 50 cents in the year-ago quarter. The Zacks Consensus Estimate was pegged at (5) cents.
Quarterly revenues decreased 3.5% (down 5.1% on a constant-currency basis) year over year to $305.1 million due to strong consumer demand. Also, the top line missed the Zacks Consensus Estimate by 0.2%.
Revenues from Sonos speakers were $223.3 million, down 5.1% from the prior-year quarter’s levels. The consensus estimate for the Sonos speakers segment is pegged at $229 million.
Sonos system products’ revenues were $62.3 million, down 0.8% year over year. The consensus estimate for the Sonos system products segment is pegged at $58 million. Revenues from Partner products and other totaled $19.5 million, up 5.9% year over year.
Region-wise, revenues from the Americas totaled $203.5 million, up 1.9% year over year. Europe, the Middle East and Africa generated revenues of $83.4 million, down 8.8%. Revenues from the Asia Pacific were down 27.5% to $18.2 million.
Other Details
Gross profit was $128.1 million, up 3.2% from the prior-year quarter’s levels. Gross margin expanded 270 bps year over year to 42%, mainly due to lower component costs and fewer spot component purchases.
Total operating expenses amounted to $156.4 million, down from $184.2 million in the year-ago quarter, reflecting lower research and development and general and administrative expenses.
Operating loss was $28.3 million compared with $60.1 million in the year-ago quarter. Adjusted EBITDA totaled $6.2 million compared with $(25.5) million in the prior-year quarter. Higher gross margins and reduced bonus accrual and marketing and legal program spending resulted in the upside.
Cash Flow & Liquidity
For the fiscal fourth quarter, Sonos generated $22.1 million of cash from operations. Free cash flow was $11.9 million.
As of Sep 30, 2023, cash and cash equivalents were $220.3 million compared with $294.9 million as of Jul 1, 2023. SONO has no debt.
Sonos repurchased shares worth $55 million. The company has authorized a new share repurchase program of up to $200 million.
2024 Guidance
For fiscal 2024, Sonos now expects revenues to be down 3% to up 3% year over year and in the range of $1.6-$1.7 billion. On a constant-currency basis, revenues are anticipated to be down 3% to up 3%.
The gross margin is projected to be between 44% and 46%. Adjusted EBITDA is estimated to be between $150 million and $180 million, with the margin in the range of 9.4-10.6%.
The Zacks Consensus Estimate for Guidewire Software’s fiscal 2024 EPS has increased 10.5% in the past 60 days to 74 cents. Shares of GWRE have soared 47.1% in the past year.
The Zacks Consensus Estimate for Flex’s fiscal 2024 EPS has gained 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%. Shares of FLEX have gained 29.5% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has improved 7.3% in the past 60 days to $3.07.
Badger Meter’s earnings outpaced the Zacks Consensus Estimate in all the last four quarters, the average surprise being 10.3%. Shares of BMI have rallied 24.6% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Sonos (SONO) Q4 Earnings & Revenues Miss Estimates, Fall Y/Y
Sonos, Inc (SONO - Free Report) reported fourth-quarter fiscal 2023 non-GAAP loss per share of 7 cents compared with 30 cents in the prior-year quarter. On a GAAP basis, the company reported a loss of 25 cents against the earnings per share (EPS) of 50 cents in the year-ago quarter. The Zacks Consensus Estimate was pegged at (5) cents.
Quarterly revenues decreased 3.5% (down 5.1% on a constant-currency basis) year over year to $305.1 million due to strong consumer demand. Also, the top line missed the Zacks Consensus Estimate by 0.2%.
Sonos, Inc. Price, Consensus and EPS Surprise
Sonos, Inc. price-consensus-eps-surprise-chart | Sonos, Inc. Quote
Revenues Details
Revenues from Sonos speakers were $223.3 million, down 5.1% from the prior-year quarter’s levels. The consensus estimate for the Sonos speakers segment is pegged at $229 million.
Sonos system products’ revenues were $62.3 million, down 0.8% year over year. The consensus estimate for the Sonos system products segment is pegged at $58 million. Revenues from Partner products and other totaled $19.5 million, up 5.9% year over year.
Region-wise, revenues from the Americas totaled $203.5 million, up 1.9% year over year. Europe, the Middle East and Africa generated revenues of $83.4 million, down 8.8%. Revenues from the Asia Pacific were down 27.5% to $18.2 million.
Other Details
Gross profit was $128.1 million, up 3.2% from the prior-year quarter’s levels. Gross margin expanded 270 bps year over year to 42%, mainly due to lower component costs and fewer spot component purchases.
Total operating expenses amounted to $156.4 million, down from $184.2 million in the year-ago quarter, reflecting lower research and development and general and administrative expenses.
Operating loss was $28.3 million compared with $60.1 million in the year-ago quarter. Adjusted EBITDA totaled $6.2 million compared with $(25.5) million in the prior-year quarter. Higher gross margins and reduced bonus accrual and marketing and legal program spending resulted in the upside.
Cash Flow & Liquidity
For the fiscal fourth quarter, Sonos generated $22.1 million of cash from operations. Free cash flow was $11.9 million.
As of Sep 30, 2023, cash and cash equivalents were $220.3 million compared with $294.9 million as of Jul 1, 2023. SONO has no debt.
Sonos repurchased shares worth $55 million. The company has authorized a new share repurchase program of up to $200 million.
2024 Guidance
For fiscal 2024, Sonos now expects revenues to be down 3% to up 3% year over year and in the range of $1.6-$1.7 billion. On a constant-currency basis, revenues are anticipated to be down 3% to up 3%.
The gross margin is projected to be between 44% and 46%. Adjusted EBITDA is estimated to be between $150 million and $180 million, with the margin in the range of 9.4-10.6%.
Zacks Rank
Sonos currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the broader technology space are Guidewire Software (GWRE - Free Report) , Flex (FLEX - Free Report) and Badger Meter (BMI - Free Report) . Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Guidewire Software’s fiscal 2024 EPS has increased 10.5% in the past 60 days to 74 cents. Shares of GWRE have soared 47.1% in the past year.
The Zacks Consensus Estimate for Flex’s fiscal 2024 EPS has gained 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%. Shares of FLEX have gained 29.5% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has improved 7.3% in the past 60 days to $3.07.
Badger Meter’s earnings outpaced the Zacks Consensus Estimate in all the last four quarters, the average surprise being 10.3%. Shares of BMI have rallied 24.6% in the past year.