Sonos, a maker of premium music speakers and television sound bars, late Wednesday reported better-than-expected quarterly results but lowered its full-year profit outlook. Sonos stock surged on the news Thursday.
The Santa Barbara, Calif.-based company earned 6 cents a share on sales of $399.8 million in its fiscal second quarter ended April 2. Analysts polled by FactSet expected Sonos earnings of 5 cents a share on sales of $353 million. On a year-over-year basis, Sonos earnings fell 50% while sales climbed 20%.
Sonos said its gross profit margin fell to 44.8% from 49.8% in the year-earlier period. The company blamed higher costs related to supply chain challenges for the decrease.
Also, Sonos lowered its gross margin guidance for the full year to a range of 45.5% to 46%. It previously guided to a range of 46% to 47%. The revised guidance is still within the company's long-term guidance range of 45% to 47%.
Sonos Stock Rises After Report
On the stock market today, Sonos stock jumped 14.3% to 21.72. During the regular session Wednesday, Sonos stock fell 8.6% to close at 19.01 amid a broad market sell-off.
For the full fiscal 2022, Sonos forecast revenue of $1.95 billion to $2 billion, representing growth of 14% to 16% from fiscal 2021. Wall Street had predicted sales of $1.95 billion.
Sonos also announced new products on Wednesday. They included an entry-level television sound bar called the Sonos Ray, priced at $279. It also debuted three new colors for its Sonos Roam portable smart speaker, which costs $179.
"We continue to see strong demand trends," Chief Financial Officer Brittany Bagley told Investor's Business Daily. "We're expecting 20% to 27% growth in the second half of the year on the back of the new products."
But Sonos expects to see supply chain constraints through the rest of its fiscal year, which ends in September, she said. The biggest constraints are shortages of necessary semiconductors and other components, Bagley said.
Low Composite Rating
Sonos stock ranks third out of 13 stocks in IBD's consumer electronics industry group, according to IBD Stock Checkup.
But Sonos stock has a poor IBD Composite Rating of 28 out of 99. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
