Earnings Preview: What To Expect From Sonos

Core Viewpoint - Sonos is entering the headphone market with a new product priced at $449, aiming to expand its consumer technology offerings beyond home speakers [1] Earnings Preview - The company is expected to report a loss of ($0.41) per share on revenue of $252.67 million, with an unofficial Whisper number indicating a loss of ($0.43) per share [2] Historical Earnings Performance - Sonos has experienced fluctuating earnings over the years, with losses prior to 2020. The earnings per share (EPS) were as follows: ($0.18) in 2020, $1.55 in 2021, $1.24 in 2022, and $0.92 in 2023. The forecast for 2024 is a loss of ($0.28) per share, followed by a loss of ($0.27) per share in 2025 [3] Stock Valuation - The stock is currently trading significantly below its record high of $44.72 per share, with a price-to-earnings (P/E) ratio of 21, which is comparable to the S&P 500 [4] Technical Analysis - The stock has been in a long-term downtrend, with current efforts to stabilize and potentially reverse this trend. Market reactions to the upcoming earnings report will be critical, with bulls hoping for a gap up and bears anticipating a gap down [5] Company Profile - Sonos, Inc. designs, develops, manufactures, and sells audio products and services globally, offering a range of wireless, portable, and home theater speakers, as well as accessories through approximately 10,000 retail stores and e-commerce platforms [6] Company History - Originally known as Rincon Audio, Inc., the company rebranded to Sonos, Inc. in May 2004 and was incorporated in 2002, with its headquarters located in Santa Barbara, California [7] Market Reaction Importance - The market's reaction to earnings news is crucial for assessing the company's performance, emphasizing the need for investors to manage losses effectively [7]