Sonos Q2 revenue rises

Overview

• US audio equipment maker's fiscal Q2 revenue grew 8% yr/yr, returning to growth

• Adjusted EBITDA for fiscal Q2 turned positive after four years of losses

• Company repurchased 2.5 mln shares, returning $40 mln to shareholders

Outlook

• Company will provide guidance during its Q2 earnings call

Result Drivers

• PRODUCT AND SOFTWARE IMPROVEMENTS - Sonos cited better products and a stronger software experience as key drivers of Q2 performance

• OPERATING EXPENSE REDUCTIONS - Gross profit dollar growth and reduced operating expenses drove a 48% yr/yr increase in first half Adjusted EBITDA

Company press release: ID:nBw7q9Blga

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Sonos Inc is $19.50, about 31.4% above its May 1 closing price of $14.84

• The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 45 three months ago

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