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Sonos (SONO) Continues to Expand Home Theater Product Line

Sonos SONO announced the launch of its new speaker, Sub Mini, to further expand its home theater product line. The speaker is priced at $429 and is scheduled to be launched on Oct 6, 2022.

The Sub Mini features an acoustically sealed cabinet with woofers facing inward that creates a force-canceling effect, which reduces distortion and provides its users with an immersive audio experience. It can also be paired with the company’s existing line of home theater products like Beam or Ray.

The new speaker can be easily installed via the Sonos app. Customers can also leverage Trueplay to fine-tune Sub Mini’s sound, which adjusts the speaker’s sound per its surroundings.

Sonos, Inc. Price and Consensus

Sonos, Inc. price-consensus-chart | Sonos, Inc. Quote

Headquartered in Santa Barbara, CA, Sonos operates as a consumer electronics company that is primarily involved in the manufacturing. In the last reported quarter, the company delivered non-GAAP earnings of 19 cents per share, down 29.6% on a year-over-year basis.

Quarterly revenues declined 1.8% (up 2.2% on a constant-currency basis or cc) year over year to $372 million, owing to soft demand for its products amid continued supply constraints and unfavorable foreign exchange movements. Revenues for Sonos speakers were $314.2 million, up 1.3% from the prior-year quarter’s levels.

The company also slashed its guidance for 2022, owing to weak global macroeconomic conditions, lingering supply-chain troubles, moderating run rates in business and caution from some of the company’s retail channel partners.

Sonos now expects revenues to increase 1-2% year over year in the range of $1.73-$1.76 billion. The company’s earlier expected revenues increased 14-16% year over year in the range of $1.95-$2 billion.

Sonos currently carries a Zacks Rank #3 (Hold). Shares of the company have lost 57.8% compared with the industry’s fall of 36% in the past year.


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Stocks to Consider

Some better-ranked stocks from the broader technology space are Cadence Design Systems CDNS, Badger Meter BMI and Arista Networks ANET. Arista Networks and Badger Meter currently sport a Zacks Rank #1 (Strong Buy), whereas Cadence Design Systems presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.

Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 6.3% in the past year.

The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 6% in the past 60 days.

Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 3.7% of their value in the past year.

The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $4.04 per share, increasing 10.1% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.

Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 39.3% in the past year.


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