Sonos (NASDAQ:SONO) announced FQ1 results on Tuesday, surpassing Wall Street’s expectations for earnings and revenue.
The company’s shares rose over 8% in premarket trading Wednesday.
Sonos posted Q1 earnings per share (EPS) of $0.84, topping the consensus estimates of $0.42. Revenue came in at $612.9 million, while analysts estimated $589.1 million.
Gross margin rose 374 basis points year-over-year to 46.1%.
For the full fiscal year, adjusted EBITDA is anticipated to be in the range of $150 million to $160 million. Revenue is expected to range from $1.6 billion to $1.7 billion, compared to the $1.64 billion projected by analysts.
"Despite the challenging environment, we are winning in the market and outperforming the competition,” the company said in a statement.
Jefferies analysts maintained their bullish outlook on SONO after the report’s release.
“We remain Buy ahead of an exciting product roadmap which we believe includes a headphones launch in 3Q24, which can drive $61M at a $400 price point for every 1% of cross-sell to existing households,” analysts wrote.
“Our $22 PT implies 13x our FY25 Adj EBITDA est.,” they added.