Sonos offers upbeat earnings outlook despite supply challenges

Sonos Inc. beat sales expectations for its most recent quarter while offering an upbeat outlook for the new financial year as the smart-audio maker continues to face supply chain impacts but hopes Expect the pressure to ease by 2022.

The speaker maker saw fiscal Q4 revenue jump to $359.5 million from $339.8 million, while analysts surveyed by FactSet were looking for $360 million. .

Shares were up 2% in after-hours trading after the report was released.

While Sonos

keep watching CEO Patrick Spence told MarketWatch that demand is “extremely strong” for its products, telling MarketWatch the company is feeling the impact of the global supply decline.

Chief Financial Officer Brittany Bagley continues to raise component costs, especially for the most constrained elements, which are mainly located in the semiconductor space. The company has suffered from an increase in shipping and logistics fees as it relies more on air freight than on other things.

The company posted a net loss for its fiscal fourth quarter of $8.7 million, or 7 cents a share, while it recorded net income of $18.4 million, or 15 cents a share. stocks, in the first quarter of the year. After adjusting for stock-based compensation, restructuring fees and other expenses, Sonos earned 8 cents a share, down from 33 cents a year earlier. The FactSet consensus calls for 10 cents a share, based on estimates from four analysts.

Sonos recorded $17.1 million in adjusted earnings before interest, taxes, depreciation and amortization (Ebitda), which is a non-GAAP metric. Analysts tracked by FactSet had expected $16 million.

For the company’s new fiscal year that just started, Sonos predicts revenue between $1.925 billion and $2.0 billion and adjusted Ebitda from $280 million to $325 million. Analysts tracked by FactSet modeled $1.86 billion in revenue and $285 million in adjusted Ebitda.

The full-year revenue forecast exceeded consensus expectations, but Sonos thinks it could hit a bump in the holiday quarter due to supply chain issues. “It could be a challenge for us to grow” during Sonos’ fiscal first quarter, the holiday quarter, Bagley told MarketWatch. “From a supply standpoint, it’s still pretty tough in terms of components and logistics.”

Spence sees the supply situation evolving as the financial year continues, and he’s optimistic about the broader demand trends Sonos is seeing in its business. The company has a “good backlog right now,” and consumers seem to be interested in portable products like the Roam and Move speakers because they’re doing more outside of their homes.

Roam speaker, Released in April, which was first noticed with existing Sonos customers but has now attracted interest from new customers due to the product’s portability and lower price point. Overall, Spence pointed to a “flywheel” in Sonos’ business as he hopes the company will continue to attract existing customers to add additional Sonos products to their home systems.

Sonos also announced a new share buyback program of up to $150 million. Under previous buyback programs, it repurchased $100 million of shares, or 5.2 million shares, at an average price of $19.30 each. | Sonos offers upbeat earnings outlook despite supply challenges


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