I'm upgrading Sonos to a buy as downside risks are largely priced in after a 30% YTD drop, with signs of stabilization emerging. Sonos is focusing on premium brand curation, expanding into new markets like headphones, and aggressively cutting costs to boost profitability. Revenue returned to growth in Q2, beating expectations and signaling a potential turnaround after two tough fiscal years.
Sonos (SONO) reported earnings 30 days ago. What's next for the stock?
The premium speaker maker's stock is jumping as the home theater market and entry-level price cut boost sales.
SONO hit the high end of revenue guidance and beat adjusted EBITDA expectations in fiscal Q2 2025 despite a challenging macroeconomic environment.
While the top- and bottom-line numbers for Sonos (SONO) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Sonos (SONO) came out with a quarterly loss of $0.18 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.34 per share a year ago.
Sonos, Inc. (NASDAQ:SONO ) Q2 2025 Earnings Conference Call May 7, 2025 4:30 PM ET Company Participants James Baglanis - Head, Investor Relations Tom Conrad - Interim Chief Executive Officer Saori Casey - Chief Financial Officer Eddie Lazarus - Chief Strategy Officer and Chief Legal Officer Conference Call Participants Steve Frankel - Rosenblatt Securities Logan Katzman - Raymond James Erik Woodring - Morgan Stanley Rayyana Matraji - Jefferies Operator Hello and welcome to the Sonos Second Quarter Fiscal 2025 Conference Call. [Operator Instructions] After the speakers' remarks, there will be a question-and-answer session.
SONO's Q2 earnings may have gained from Arc Ultra demand and direct-to-consumer initiatives, though higher promotions and app recovery costs likely hurt margins.
Sonos (SONO) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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Shares of Sonos have continued to wobble after a very strong Q1 earnings print, reflecting investors' nervousness after the company's app update fiasco. The company achieved a strong earnings beat in Q1, with its revenue decline of -10% y/y landing much better than the -15% y/y that Wall Street had feared. The company is freshly cutting 12% of its workforce (after already laying off staff last August), aiming for $60-$70 million in annual savings that potentially turn around adjusted EBITDA this year.
SONO reports better-than-expected fiscal first-quarter results. However, both the top and bottom lines decline year over year.