Why Sonos Stock Is Surging Thursday
Portfolio Pulse from Adam Eckert
Sonos Inc (NASDAQ:SONO) stock surged after the company reported Q4 financial results that exceeded expectations and announced a $200 million stock repurchase program. Q4 revenue was $305.1 million, surpassing estimates of $299.4 million, and the Q4 EPS showed a 7 cent loss, better than the expected 18 cent loss. Gross margin increased to 42%, and the company generated $12 million in free cash flow. Despite a challenging year, CEO Patrick Spence highlighted the strength of the Sonos brand. The company's outlook for full-year 2024 revenue is $1.6 to $1.7 billion, slightly below estimates of $1.71 billion. Morgan Stanley analyst Erik Woodring maintained an Equal-Weight rating on Sonos but lowered the price target from $19 to $17.
November 16, 2023 | 4:03 pm
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Sonos Inc reported strong Q4 results with higher revenue and lower losses than expected, announced a $200 million buyback program, and provided a full-year 2024 revenue outlook. Morgan Stanley maintained an Equal-Weight rating but lowered the price target.
The positive earnings report and the announcement of a stock buyback program are likely to instill investor confidence and drive the stock price up in the short term. However, the slightly conservative revenue outlook for 2024 and the lowered price target by Morgan Stanley may temper some of the enthusiasm.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100