Sonos forecasts 2022 sales above estimates; shares rise

- Advertisement -


(Businesshala) – Sonos Inc on Wednesday forecast fiscal 2022 sales above analyst estimates, despite facing a backlog for its smart speakers due to supply constraints.

- Advertisement -

According to IBES data from Refinitiv, Sonos said it expects sales of between $1.925 billion and $2 billion in fiscal 2022, exceeding Wall Street’s estimate of $1.86 billion.

- Advertisement -

Shares of Sonos rose 4.6% to $35 in after-hours trading with the results.

According to Refinitiv data, for the fiscal fourth quarter ended October 2, Sonos reported sales of $359.54 million and 8 cents per share, excluding items, expected sales of $360.2 million and reported a loss of 7 cents per share. . ,

- Advertisement -

Santa Barbara, California-based Sonos has faced challenges from major tech companies such as Apple Inc., which tried to enter the market for premium-priced smart speakers but have since fallen back to lower price points. . Sonos earlier this year introduced the ROM, a sub-$200 product, aimed at introducing the Sonos brand to a wider audience.

Sonos said it expects gross margin of 46% to 47% for fiscal year 2022, which is in line with analysts’ expectations. The company has diversified its supply chain away from China in recent years to include Malaysian factories in an effort to reduce US tariffs. This year, it has worked despite both chip shortages and backups at US ports.

Chief executive Patrick Spence said the company imports its products via planes and ships, depending on the size.

“We have notably tried and pushed it to the wind to make sure that we are meeting the needs of customers over the holiday period,” Spence told Businesshala, noting that the increase in air cargo for the company. The margin forecast extends to . “We will do whatever we can to make the products sustainable and be smart about it.”

Sonos also said it has ended a $100 million share buyback program and will begin a new $150 million repurchase program.

Reporting by Stephen Nellis in San Francisco; Editing by Leslie Adler and Peter Cooney

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox