Premium speaker maker Sonos late Wednesday matched Wall Street's bottom-line target on better-than-expected sales for its fiscal second quarter. But the consumer electronics firm cut its outlook for the rest of the year on softening demand. Sonos stock tumbled in extended trading.
The Santa Barbara, Calif.-based company lost 24 cents a share on sales of $304.2 million in the quarter ended April 1. Analysts polled by FactSet had expected Sonos to lose 24 cents a share on sales of $296 million. In the year-earlier period, Sonos earned 6 cents a share on sales of $400 million.
Sonos slashed its sales forecast for the full fiscal year to a range of $1.625 billion to $1.675 billion. That would represent a decline of 4% to 7% from fiscal 2022 sales. Three months ago, Sonos predicted fiscal 2023 revenue of $1.7 billion to $1.8 billion.
"We are reducing our expectations for the second half of fiscal 2023 due to softening consumer demand and channel partner inventory tightening," Chief Executive Patrick Spence said in a news release.
Sonos Stock Tanks After Earnings Report
In after-hours trading on the stock market today, Sonos stock plummeted 19.4% to 17.05.
During the regular session Wednesday, Sonos stock fell 2.9% to close at 21.15.
Ahead of the earnings report, Sonos stock had been flirting with a buy zone after hitting a buy point of 21.66 out of a flat base on May 3, according to IBD MarketSmith charts.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
