Audio technology Sonos company (NASDAQ:SONO) will be reporting earnings this Monday after market close. Here’s what to look for.
Sonos beat analysts’ revenue expectations last quarter, reporting revenues of $545.7 million, flat year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is Sonos a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Sonos’s revenue to grow 2.7% year on year, in line with the 2.8% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sonos has a history of exceeding Wall Street’s expectations.
Looking at Sonos’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Apple delivered year-on-year revenue growth of 16.6%, beating analysts’ expectations by 1.7%, and Rush Street Interactive reported revenues up 41.1%, topping estimates by 11.3%. Apple traded up 3.1% following the results while Rush Street Interactive was also up 16.6%.
Read our full analysis of Apple’s results here and Rush Street Interactive’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 7% on average over the last month. Sonos is up 9.2% during the same time and is heading into earnings with an average analyst price target of $19.13 (compared to the current share price of $14.84).
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