The premium speaker maker Sonos (SONO), on Wednesday, met Wall Street's target for the bottom line of its second fiscal quarter with sales that were better than expected. The consumer electronics company cut its forecast for the remainder of the year due to a softening in demand. Sonos shares fell in extended trading.
Santa Barbara, Calif. based company lost 24c per share on sales of 304.2 million for the quarter ending April 1. FactSet polled analysts who expected Sonos would lose 24 cents per share on $296 million in sales. Sonos had earned 6 cents per share in the previous period on sales of 400 million.
Sonos has slashed their sales forecast for the entire fiscal year. The range is $1.625 to $1.675 Billion. This would be a drop of 4 to 7 percent from fiscal 2022. Sonos had predicted revenue for fiscal 2023 of between $1.7 and $1.8 billion three months earlier.
In a press release, Chief Executive Patrick Spence stated that "we are reducing expectations for the second quarter of fiscal 2023" due to softer consumer demand and tighter inventory from channel partners.
Sonos Stock Tanks After Earnings Report
Stocks of Sonos plummeted by 19.4% in after-hours trading today on the stock exchange, to 17.05.
In the regular session on Wednesday, Sonos' stock closed at 21.15, a 2.9% drop.
According to IBD MarketSmith charts, Sonos stock was flirting with the buy zone before its earnings report. It had hit a buying point of 21.66 from a flat base in May 3rd.