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 Gearing Up to Report Q2 Earnings: Here's What to Expect
Read MoreHide Full Article
Sonos, Inc. (SONO - Free Report) is scheduled to report second-quarter fiscal 2025 results on May 7, after market close.
For the quarter, SONO anticipates revenues between $240 million and $265 million. The Zacks Consensus Estimate for revenues is pegged at $255.9 million, indicating a rise of 1.3% from the year-ago reported number.
The consensus estimate for the bottom line is pegged at a loss of 18 cents compared with a loss of 34 cents reported in the prior year.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one. It delivered a trailing four-quarter average earnings surprise of 22.8%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Sonos’ fiscal second-quarter performance is likely to have been adversely impacted by multiple headwinds, including elevated promotional activity that weighed on margins and restructuring efforts tied to a company-wide reorganization. The workforce reduction, affecting nearly 12% of employees, is expected to result in charges of $15 million to $18 million, primarily related to severance and benefits, most of which are being recognized in the second quarter. These cost pressures, coupled with the operational disruption from the restructuring, are likely to have hurt its second-quarter performance.
The troubled rollout of Sonos’ extensively redesigned app in May 2024 is likely to have weighed on its performance. Unforeseen bugs disrupted user experience and partner operations, prompting Sonos to invest $6 million in app recovery during the first quarter and project an additional $4 million to $8 million in related charges for the second quarter. These unexpected costs, combined with operational setbacks, are expected to contribute to a second-quarter adjusted EBITDA loss in the range of $27 million to $6 million.
For the second quarter, Sonos expects GAAP gross margin to be between 42% and 44%, down year over year due to foreign exchange headwinds and amortization costs, partly offset by better product mix and lower seasonal discounts. Non-GAAP gross margin is projected at 44% to 45.8%, boosted by an improved cost structure and minimal tariff impact. Non-GAAP operating expenses are expected to decline to $140–$145 million from $157 million last year.
However, Sonos’ focus on product innovation is likely to have offset second-quarter challenges. The strong launch of Sonos Ace expanded the company into the high-margin personal listening category, supporting top-line performance amid disruptions from the app redesign. Continued demand for flagship products like the Arc Ultra and Sub 4 is likely to have bolstered revenue momentum.
Additionally, the introduction of the Era 100 Pro marked Sonos’ strategic entry into the light-commercial audio market, opening a new revenue stream that may have contributed to overall growth and partially mitigated margin and operational pressures during the quarter. Sonos’ ongoing expansion of its direct-to-consumer initiatives, broader partner ecosystem and growing international presence, particularly in Asia, likely supported its second-quarter performance.
What Our Model Says About SONO
Our proven model predicts an earnings beat for SONO 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.
SONO has an Earnings ESP of +25.71% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other stocks you may want to consider, as our model shows that these, too, have the right elements to post an earnings beat in this reporting cycle.
The Zacks Consensus Estimate for AXON’s earnings is pegged at $1.27 per share, indicating year-over-year growth of 10.4%. The consensus estimate for its sales is pegged at $589.1 million, indicating year-over-year growth of 27.9%.
GXO Logistics (GXO - Free Report) currently has an Earnings ESP of +1.18% and a Zacks Rank of 3. The company is slated to report first-quarter 2025 results on May 7. The Zacks Consensus Estimate for first-quarter 2025 revenues and earnings are pegged at $2.91 billion and 26 cents per share, respectively. Shares of GXO have declined 27.1% in the past year.
CurtissWright (CW - Free Report) is set to report its first-quarter results on May 7, after market close. It has an Earnings ESP of +0.12% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for CW’s earnings is pegged at $2.39 per share, indicating year-over-year growth of 20.1%. The consensus estimate for its sales is pegged at $767.2 million, indicating year-over-year growth of 7.6%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Sonos Gearing Up to Report Q2 Earnings: Here's What to Expect
Sonos, Inc. (SONO - Free Report) is scheduled to report second-quarter fiscal 2025 results on May 7, after market close.
For the quarter, SONO anticipates revenues between $240 million and $265 million. The Zacks Consensus Estimate for revenues is pegged at $255.9 million, indicating a rise of 1.3% from the year-ago reported number.
The consensus estimate for the bottom line is pegged at a loss of 18 cents compared with a loss of 34 cents reported in the prior year.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one. It delivered a trailing four-quarter average earnings surprise of 22.8%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
In the past year, shares of SONO have plunged 46.8% against the Zacks Audio Video Production industry’s growth of 47.2%.
Image Source: Zacks Investment Research
Factors Shaping SONO’s Q2 Results
Sonos’ fiscal second-quarter performance is likely to have been adversely impacted by multiple headwinds, including elevated promotional activity that weighed on margins and restructuring efforts tied to a company-wide reorganization. The workforce reduction, affecting nearly 12% of employees, is expected to result in charges of $15 million to $18 million, primarily related to severance and benefits, most of which are being recognized in the second quarter. These cost pressures, coupled with the operational disruption from the restructuring, are likely to have hurt its second-quarter performance.
The troubled rollout of Sonos’ extensively redesigned app in May 2024 is likely to have weighed on its performance. Unforeseen bugs disrupted user experience and partner operations, prompting Sonos to invest $6 million in app recovery during the first quarter and project an additional $4 million to $8 million in related charges for the second quarter. These unexpected costs, combined with operational setbacks, are expected to contribute to a second-quarter adjusted EBITDA loss in the range of $27 million to $6 million.
Sonos, Inc. Price and EPS Surprise
Sonos, Inc. price-eps-surprise | Sonos, Inc. Quote
For the second quarter, Sonos expects GAAP gross margin to be between 42% and 44%, down year over year due to foreign exchange headwinds and amortization costs, partly offset by better product mix and lower seasonal discounts. Non-GAAP gross margin is projected at 44% to 45.8%, boosted by an improved cost structure and minimal tariff impact. Non-GAAP operating expenses are expected to decline to $140–$145 million from $157 million last year.
However, Sonos’ focus on product innovation is likely to have offset second-quarter challenges. The strong launch of Sonos Ace expanded the company into the high-margin personal listening category, supporting top-line performance amid disruptions from the app redesign. Continued demand for flagship products like the Arc Ultra and Sub 4 is likely to have bolstered revenue momentum.
Additionally, the introduction of the Era 100 Pro marked Sonos’ strategic entry into the light-commercial audio market, opening a new revenue stream that may have contributed to overall growth and partially mitigated margin and operational pressures during the quarter.
Sonos’ ongoing expansion of its direct-to-consumer initiatives, broader partner ecosystem and growing international presence, particularly in Asia, likely supported its second-quarter performance.
What Our Model Says About SONO
Our proven model predicts an earnings beat for SONO 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.
SONO has an Earnings ESP of +25.71% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other stocks you may want to consider, as our model shows that these, too, have the right elements to post an earnings beat in this reporting cycle.
Axon Enterprise (AXON - Free Report) is set to report first-quarter 2025 earnings on May 7, after market close. It has an Earnings ESP of +9.28% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AXON’s earnings is pegged at $1.27 per share, indicating year-over-year growth of 10.4%. The consensus estimate for its sales is pegged at $589.1 million, indicating year-over-year growth of 27.9%.
GXO Logistics (GXO - Free Report) currently has an Earnings ESP of +1.18% and a Zacks Rank of 3. The company is slated to report first-quarter 2025 results on May 7. The Zacks Consensus Estimate for first-quarter 2025 revenues and earnings are pegged at $2.91 billion and 26 cents per share, respectively.
Shares of GXO have declined 27.1% in the past year.
CurtissWright (CW - Free Report) is set to report its first-quarter results on May 7, after market close. It has an Earnings ESP of +0.12% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for CW’s earnings is pegged at $2.39 per share, indicating year-over-year growth of 20.1%. The consensus estimate for its sales is pegged at $767.2 million, indicating year-over-year growth of 7.6%.