Sonos is scheduled to report earnings after Wednesday’s close. In 2021, the stock hit a record high near $44.72/share and is currently trading near $14/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a loss of ($0.41)/share on $252.67 million in revenue. Meanwhile, the so-called Whisper number is a loss of ($0.43)/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company’s earnings have up and down over the last few years. The company lost money before 2020. In 2020 the company lost ($0.18)/share. In 2021, earnings grew to $1.55/share. In 2022, earnings came in at $1.24/share.
In 2023, earnings came in at $0.92/share. In 2024, the company is expected to lose ($0.28)/share. Then lose ($0.27)/share in 2025. Investors typically like growth, and the company hasn’t really enjoyed a lot of growth recently.
Maybe that will change but that could be one big reason why the stock is trading so far below its record high. Meanwhile, the stock sports a price to earnings ratio of only 21 which is close to the S&P 500.
A Closer Look At The Technicals
Technically, the stock has been in a long downtrend and its doing its best to bottom and turn higher. The bulls want to see the stock gap up after reporting earnings and the bears want to see it fall and gap down.
Company Profile
Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells audio products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
It offers wireless, portable, and home theater speakers; components; and accessories. The company offers its products through approximately 10,000 third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its website.
The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was incorporated in 2002 and is headquartered in Santa Barbara, California.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclosure: The stock has been featured on FindLeadingStocks.com