Audio technology Sonos company (NASDAQ: SONO) will be announcing earnings results this Wednesday before the bell. Here’s what investors should know.
Sonos beat analysts’ revenue expectations by 5.1% last quarter, reporting revenues of $344.8 million, down 13.2% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is Sonos a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Sonos’s revenue to grow 9% year on year to $278.2 million, a reversal from the 16.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sonos has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.9% on average.
Looking at Sonos’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Apple delivered year-on-year revenue growth of 7.9%, beating analysts’ expectations by 0.8%, and Nike reported revenues up 1.1%, topping estimates by 6.5%. Apple’s stock price was unchanged after the resultswhile Nike was up 6.5%.
Read our full analysis of Apple’s results here and Nike’s results here.
Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.4% on average over the last month. Sonos is down 6.2% during the same time and is heading into earnings with an average analyst price target of $14.35 (compared to the current share price of $16.70).
P.S. In tech investing, "Gorillas" are the rare companies that dominate their markets—like Microsoft and Apple did decades ago. Today, the next Gorilla is emerging in AI-powered enterprise software. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
