Sonos (SONO) reported earnings on Wed 5 Feb 20 (a/h)

** charts before earnings **

 

** charts after earnings **

Sonos beats by $0.02, beats on revs; reaffirms FY20 guidance

Reports Q1 (Dec) earnings of $0.60 per share, $0.02 better than the S&P Capital IQ Consensus of $0.58; revenues rose 13.2% year/year to $562 mln vs the $545.49 mln S&P Capital IQ Consensus, driven by growth in all product categories. During the holiday selling period, our planned promotions outperformed our expectations, which we believe resulted in a pull forward of revenue from the second quarter.sold 2,939,867 products, representing 22% growth year-over-year. 

Q1 FY2020 gross margin of 40.5% was 120 basis points higher than Q1 FY2019 driven by volume and mix shifts into higher margin products as well as product and material cost reductions. Excluding the effect of tariffs, gross margin would have increased 464 basis points to 44.0%.

Co reaffirms guidance for FY20, sees FY20 revs of $1.365-1.40 bln vs. $1.38 bln S&P Capital IQ Consensus; EBITDA $72-82 mln, $102-112 mln ex-tariffs. "Our planned supply chain diversification efforts are on track -- we have started limited manufacturing in Malaysia and continue to expect to be fully operational by the end of the year and therefore expect to offset the impact of future tariffs throughout the year. Our fiscal 2020 gross margin and adjusted EBITDA outlook takes into account an ~$30 million one-time negative impact as a result of the 15% tariff imposed on goods manufactured in China in effect through February 13, 2020 and 7.5% tariff from that date going forward."