Sonos jumps after rev beat

Sonos

14/11/2024 14:04

** Shares of Sonos  SONO.O  rally 6.6% premarket to $15.01, a
4-mth high, after consumer electronics firm's results beat
estimates
** Speaker maker late Weds reported fiscal Q4 rev of $255.4 mln,
down 16% y/y, but above LSEG consensus estimate of $247.4 mln
    ** It reported GAAP net loss of $53.1 mln compared to loss
of $31.2 mln a year ago
    ** Co said initial feedback on its new products Arc Ultra
and Sub 4 has been positive
    * "While the overall audio category continues to face
headwinds, we are confident that we are well positioned to take
more of it over time," CEO Patrick Spence said in statement
** Last month, Spence vowed broad series of reforms after a
disastrous app update in May that torpedoed customer trust and
caused co to cut staff
    ** Jefferies raised its PT by $1 to $18, and Craig-Hallum
increased its PT by $5 to $15 in wake of report
    ** 3 of 6 brokerages covering SONO rate stock "strong buy"
or "buy", 2 have "hold" and 1 recommends "sell"; median PT is
$15
    ** Through Weds close, shares down 18% YTD. Stock has traded
as high as $19.76 (Mar) and as low as $10.23 (Aug) in 2024

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))