An estimates-crushing quarter and a clutch of analyst price-target hikes were the rockets that propelled Sonos (SONO -0.93%) stock into the heavens this week. Across the five trading days, the next-generation audio equipment maker saw its share price rise by more than 14%, according to data compiled by S&P Global Market Intelligence.
Sonos blew past the bottom-line consensus estimate
For the first quarter of its fiscal 2024, Sonos revealed on Wednesday the company earned revenue of slightly under $613 million. This was a nearly 9% decline on a year-over-year basis; still, it trounced the consensus-analyst estimate of a bit over $589 million.
Non-GAAP (adjusted) net income went in the opposite direction, rising by nearly 3% to land at more than $106 million ($0.84 per share). That was a very convincing beat, as those prognosticators were collectively modeling only $0.42.
In its earnings release, Sonos teased a potential blockbuster new offering. It quoted CEO Patrick Spence as saying that the company was "just months away from announcing our highly anticipated new product in a multi-billion dollar category."
Sonos reiterated its full-year fiscal 2024 guidance, which called for revenue of $1.6 billion to $1.7 billion; the average analyst estimate is slightly below $1.65 billion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) should come in at $150 million to $180 million. The company did not proffer any net-income guidance.
It's a buy at higher prices, say some analysts
In the wake of the earnings release, several analysts raised their price targets on Sonos stock. Among them was Craig-Hallum's Alex Fuhrman, who cranked his level 25% higher (to $25 per share from $20) while maintaining his buy recommendation. Morgan Stanley's Erik Woodring matched Fuhrman's $5 increase and new $25 per-share target and similarly kept his overweight (read: buy) rating intact.
