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What to Expect Ahead of Sonos (SONO) Q1 Earnings Release?

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·4 min read
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Sonos, Inc. SONO is scheduled to report first-quarter fiscal 2022 results on Feb 9.

For fiscal first quarter, the Zacks Consensus Estimate is pegged at $647.17 million, indicating a year-over-year increase of 0.3%.

The Zacks Consensus Estimate for quarterly earnings is pinned at 90 cents per share, suggesting a decline of 23.1% year on year.

The company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 177.9%.

In the last reported quarter, Sonos reported non-GAAP earnings of 8 cents per share compared with 33 cents per share reported in the year-ago quarter.The bottom line beat the Zacks Consensus Estimate by 172.7%.

Sonos, Inc. Price and EPS Surprise

Sonos, Inc. Price and EPS Surprise
Sonos, Inc. Price and EPS Surprise

Sonos, Inc. price-eps-surprise | Sonos, Inc. Quote

Quarterly revenues rose 5.8% year over year to $359.5 million, driven by robust demand for its products despite continued supply constraints stemming from the pandemic. The top line surpassed the consensus estimate of $352 million.

Let’s see how things have shaped up for the upcoming announcement.

Factors at Play

Sonos remains focused on its three strategic initiatives — expanding its brand, boosting its offerings and driving operational excellence. This is likely to have favored the top line and margin expansion. Sonos is likely to have benefited from a strong demand environment, especially for its higher-end products.

Frequent product launches, including Roam and Sonos Radio HD, and partnerships with the likes of Audi and IKEA augurs well. Sonos Radio HD is a high-definition streaming tier (ad-free) of Sonos Radio service that offers more special content in the Sonos app.

In the last reported quarter, management noted that Sonos Radio listening hours doubled in fiscal 2021.

In fourth-quarter fiscal 2021, Sonos launched an avant-garde, compact smart soundbar dubbed Beam (Gen 2). The soundbar looks nearly identical to its predecessor and is equipped with Dolby’s Atmos technology that provides a richer, immersive listening experience for movies, TV and music. It is compatible with more than 100 streaming services in the Sonos app. The move is likely to boost the demand for Sonos’ high-end speakers in the growing global audio market.


However, pandemic-induced worldwide supply chain and logistics troubles and component shortages continue to be major concerns. Increasing operating costs reflecting higher research and development as well as sales and marketing expenses is another headwind.

Earnings Whispers

Our proven model does not predict an earnings beat for Sonos 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.

Sonos has an Earnings ESP of -17.78% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some other companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:

ONTO Innovation ONTO has an Earnings ESP of +0.9% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

ONTO Innovation is set to release fourth-quarter 2021 results on Feb 8. The Zacks Consensus Estimate for earnings is pegged at $1.11 per share, suggesting an increase of 54.2% from the prior-year quarter’s reported figure. Shares of ONTO have increased 49.1% in the past year.

NetApp NTAP has an Earnings ESP of +2.09% and a Zacks Rank of 2 at present.

NetApp is scheduled to release third-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for earnings is pegged at $1.28 per share, suggesting an increase of 16.4% from the prior-year quarter’s levels. Shares of NTAP have increased 29% in the past year.

CDW Corporation CDW has an Earnings ESP of +2.00% and a Zacks Rank of 2.

CDW Corporation is scheduled to release fourth-quarter 2021 results on Feb 9. The Zacks Consensus Estimate for earnings is pegged at $1.90 per share, indicating an increase of 4.4% from the year-ago quarter’s levels. Shares of CDW Corporation have increased 29% in the past year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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NetApp, Inc. (NTAP) : Free Stock Analysis Report

Sonos, Inc. (SONO) : Free Stock Analysis Report

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Onto Innovation Inc. (ONTO) : Free Stock Analysis Report

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