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Sonos (SONO) to Report Q1 Earnings: Factors to Consider

Zacks Equity Research
·3 min read

Sonos Inc SONO is scheduled to report first-quarter fiscal 2023 results on Feb 8.

For the fiscal first quarter, the Zacks Consensus Estimate for revenues is pegged at $602.3 million, indicating a year-over-year decline of 9.4%.
The Zacks Consensus Estimate for the bottom line is pegged at 33 cents per share, indicating a year-over-year decline of 67.7%.

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

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

Factors at Play

Sonos is expected to announce its fourth-quarter performance, but the company has been facing several challenges in the past quarter, including weakened consumer demand due to the current state of global macroeconomic conditions and the impact of rising inflation. Moreover, unfavorable forex movements and persistent supply-chain issues have increased component costs, further affecting the company's performance.

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Despite these headwinds, higher selling prices are expected to provide some cushioning to the first-quarter results. Sonos has been actively focusing on its three key strategic initiatives, which include expanding its brand, enhancing its offerings and driving operational excellence. These efforts are expected to help the company stay competitive in the market.

On a positive note, the company recently launched a new product, Sonos Voice Control, aimed at its French-speaking audience. This feature allows users to control their music using only their voice, and it is compatible with various Sonos speakers, Sonos Radio, Apple Music, Amazon Music and Deezer.

Despite facing several challenges in the past year, Sonos' strategies has continued to drive growth, and the company added 1.4 million households in fiscal 2022 to its install base, bringing the total to 14 million households at the end of the last-reported quarter. Apart from that, the company’s performance is likely to benefit from continued momentum in the newly launched Installer Solutions channel.

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.

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:

Cambium Networks CMBM has an Earnings ESP of +9.27% and a Zacks Rank #1. CMBM is set to report its fourth-quarter 2022 results on Feb 16. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CMBM’s to-be-reported quarter’s earnings and revenues is pegged at 26 cents per share and $82.3 million, respectively. Shares of the company have declined 11.3% in the past year.

Bruker BRKR has an Earnings ESP of +3.89% and a Zacks Rank of 2, at present. BRKR is set to report its fourth-quarter 2022 results on Feb 9.

The Zacks Consensus Estimate for BRKR’s to-be-reported quarter’s earnings and revenues is pegged at 72 cents per share and $671.6 million, respectively. Shares of the company have gained 7.5% in the past year.

Perion Network PERI has an Earnings ESP of +13.40% and a Zacks Rank #3. PERI is set to report its fourth-quarter 2022 results on Feb 8.

The Zacks Consensus Estimate for PERI’s to-be-reported quarter’s earnings and revenues is pegged at 70 cents per share and $205.1 million, respectively. Shares of the company have gained 58.8% in the past year.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Perion Network Ltd (PERI) : Free Stock Analysis Report

Bruker Corporation (BRKR) : Free Stock Analysis Report

Cambium Networks Corporation (CMBM) : Free Stock Analysis Report

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Zacks Investment Research