Vivek Kumar
Add to Bookmarks

Sonos shares surged as much as 20% in after trading hours on Wednesday after the developer and manufacturer of audio products reported better-than-expected earnings in the fiscal second quarter and lifted its full-year 2021 revenue outlook.

The Santa Barbara-based company reported earnings per share of $0.12 in the quarter ended April 3, 2021, beating the market expectations for a loss of $0.22 per share. The company said its sales surged 90% to $333 million, topping Wall Street’s consensus estimates of $248.5 million.

Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

The Company, which offers wireless speakers, home theatre speakers, and other home audio components, lifted its fiscal 2021 revenue guidance in the range of $1.63 billion to $1.68 billion, up from the previous projection of $1.525 billion to $1.575 billion.

Following this, Sonos shares surged as much as 20% to $37.74 in after trading hours on Wednesday.

Analyst Comments

“F2Q earnings reflects a platform narrative that continues to strengthen with demand showing signs of sustainability, consistent execution, and improving earnings linearity, all which support a premium valuation in-line with other high-quality consumer HW peers,” noted Katy Huberty, equity analyst at Morgan Stanley.


Sonos Stock Price Forecast

Four analysts who offered stock ratings for Sonos in the last three months forecast the average price in 12 months of $44.00 with a high forecast of $47.00 and a low forecast of $40.00.

The average price target represents a 39.73% increase from the last price of $31.49. Of those four analysts, two rated “Buy”, two rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley raised the base target price to $47 from $45 with a high of $66 under a bull scenario and $28 under the worst-case scenario. The firm gave an “Overweight” rating on the audio products manufacturer’s stock.

“We raise our FY21 revenue 7% to $1.67 billion, or 26% Y/Y growth, and raise EPS 18% to $0.79. We roll forward to FY22 revenue which combined with a higher share count and lower peer valuation multiples translates to a $47 price target, up from $45 previously,” Morgan Stanley’s Huberty added.

“Given the recent pullback in Sonos‘ share price we’d be aggressive buyers of the dip and look to F3Q earnings in early August and the August 13th ITC decision on Sonos‘ patent infringement case against Google as the next major stock catalysts.”

Several other analysts have also updated their stock outlook. Jefferies lowered the target price to $40 from $42. BofA Global Research lifted the price objective to $47 from $45. Stifel increased the target price to $40 from $34. D.A. Davidson upped the target price to $45 from $24.

Check out FX Empire’s earnings calendar

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker