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Sonos is set to announce its fiscal third-quarter performance, but it has been facing several challenges in the past quarter, including softening consumer demand and inventory tightening by channel partners. Unfavorable forex movement and lingering supply-chain issues resulting in increased component costs are likely to have been other headwinds.
The company’s performance is likely to have been affected by softening run-rate levels due to a decline in U.S. home theater sales. Also, the company’s top line is expected to have been affected due to dealers in the Installer Solutions channel targeting a lower-than-expected level of inventory and weakness prevailing over global macroeconomic conditions.
Continued weakness in Sonos system products and the Sonos speakers segment is likely to have affected its fiscal third-quarter performance. The consensus estimate for Sonos system products and the Sonos speakers segment is pegged at $40.9 million and $276.9 million, respectively.
Despite these headwinds, higher selling prices are expected to have provided some cushioning to the fiscal third-quarter results. The company has been focused on its three strategic initiatives — expanding its brand, boosting its offerings and driving operational excellence.
On a positive note, the company is likely to have benefited from the latest subscription-based software-as-a-service offering — Sonos Pro. Also, the robust uptake of Era 100 and Era 300 speakers is likely to have cushioned the top-line performance. The flywheel initiatives are expected to have helped the company to expand its customer base and monetize the existing customer install base through new product launches.
Earnings Whispers
Our proven model does not conclusively 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. However, this is not the case here.
Sonos has an Earnings ESP of 0.00% 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 stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for NVDA’s to-be-reported quarter’s earnings and revenues is pegged at $2.06 per share and $11.02 billion, respectively. Shares of the company have gained 165.9% in the past year.
Workday (WDAY - Free Report) has an Earnings ESP of +2.39% and a Zacks Rank #1. WDAY is set to report its second-quarter fiscal 2024 results on Aug 24.
The Zacks Consensus Estimate for WDAY’s to-be-reported quarter’s earnings and revenues is pegged at $1.24 per share and $1.77 billion, respectively. Shares of the company have gained 40.4% in the past year.
Walmart (WMT - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank #2. WMT is set to report its second-quarter fiscal 2024 results on Aug 17.
The Zacks Consensus Estimate for WMT’s to-be-reported quarter’s earnings and revenues is pegged at $1.67 per share and $159.5 billion, respectively. Shares of the company have gained 24.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Sonos (SONO) to Report Q3 Earnings: What's in the Cards?
Sonos Inc (SONO - Free Report) is scheduled to report third-quarter fiscal 2023 results on Aug 9.
For the fiscal third quarter, the Zacks Consensus Estimate for revenues is pegged at $340.7 million, indicating a year-over-year decline of 8.4%.
The Zacks Consensus Estimate for the bottom line is pegged at breakeven. In the prior-year quarter, the company also reported breakeven earnings.
Let’s see how things have shaped up for the upcoming announcement.
Sonos, Inc. Price and EPS Surprise
Sonos, Inc. price-eps-surprise | Sonos, Inc. Quote
Factors at Play
Sonos is set to announce its fiscal third-quarter performance, but it has been facing several challenges in the past quarter, including softening consumer demand and inventory tightening by channel partners. Unfavorable forex movement and lingering supply-chain issues resulting in increased component costs are likely to have been other headwinds.
The company’s performance is likely to have been affected by softening run-rate levels due to a decline in U.S. home theater sales. Also, the company’s top line is expected to have been affected due to dealers in the Installer Solutions channel targeting a lower-than-expected level of inventory and weakness prevailing over global macroeconomic conditions.
Continued weakness in Sonos system products and the Sonos speakers segment is likely to have affected its fiscal third-quarter performance. The consensus estimate for Sonos system products and the Sonos speakers segment is pegged at $40.9 million and $276.9 million, respectively.
Despite these headwinds, higher selling prices are expected to have provided some cushioning to the fiscal third-quarter results. The company has been focused on its three strategic initiatives — expanding its brand, boosting its offerings and driving operational excellence.
On a positive note, the company is likely to have benefited from the latest subscription-based software-as-a-service offering — Sonos Pro. Also, the robust uptake of Era 100 and Era 300 speakers is likely to have cushioned the top-line performance. The flywheel initiatives are expected to have helped the company to expand its customer base and monetize the existing customer install base through new product launches.
Earnings Whispers
Our proven model does not conclusively 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. However, this is not the case here.
Sonos has an Earnings ESP of 0.00% 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 stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
NVIDIA (NVDA - Free Report) has an Earnings ESP of +5.56% and a Zacks Rank #1. NVDA is set to report its second-quarter 2023 results on Aug 23. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVDA’s to-be-reported quarter’s earnings and revenues is pegged at $2.06 per share and $11.02 billion, respectively. Shares of the company have gained 165.9% in the past year.
Workday (WDAY - Free Report) has an Earnings ESP of +2.39% and a Zacks Rank #1. WDAY is set to report its second-quarter fiscal 2024 results on Aug 24.
The Zacks Consensus Estimate for WDAY’s to-be-reported quarter’s earnings and revenues is pegged at $1.24 per share and $1.77 billion, respectively. Shares of the company have gained 40.4% in the past year.
Walmart (WMT - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank #2. WMT is set to report its second-quarter fiscal 2024 results on Aug 17.
The Zacks Consensus Estimate for WMT’s to-be-reported quarter’s earnings and revenues is pegged at $1.67 per share and $159.5 billion, respectively. Shares of the company have gained 24.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.