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Sonos Inc. (NASDAQ:SONO) stock surged over 15% after a stronger than expected fiscal Q1 report and reaffirmed full-year guide.
The speaker manufacturer reported $0.79 in earnings per share, exceeding expectations by $0.20. Meanwhile, a surprise rise in revenue to $672.58M exceeded the Street estimate by $92.28M. The company noted that gross margin decreased 540 basis points year-over-year to 42.4%, owing in part to inventory clearing actions that helped inventories come down 33% from the prior year.
“We entered the quarter with our healthiest in-stock inventory position in three years which allowed us to meet the tremendous customer response to our industry-leading product portfolio and gain share across our key categories and geographies,” CEO Patrick Spence said. “Looking ahead, we remain on track to deliver against our fiscal 2023 guidance as we build upon our momentum and prepare to launch multiple new products this year. While significant macroeconomic uncertainty remains, my conviction in the long-term potential of Sonos has never been stronger.”
The company maintained its full-year guidance for revenue in the range of $1.7B to $1.8B. Analysts had anticipated $1.72B in revenue for the quarter. Gross margin guidance in the range of 45% to 46% for the full year was also maintained. Adjusted EBITDA is expected to reach a range of $145M to $180M, against a $160.1M consensus estimate.
Shares of the speaker maker surged 15.85% in after hours trading on Wednesday.
Dig into the details of the report.
