Earnings Preview: Sonos Reports Today. Here’s A Closer Look

Sonos SONO is scheduled to report earnings after Wednesday’s close. The stock is trading near a record high of $32/share and has rallied sharply since it came public in 2018. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Earnings Preview:

Sonos is expected to earn $0.84/share on $590.41 million in revenue. Meanwhile, the so-called Whisper number is $0.95/share. The Whisper number is the Street’s unofficial view on earnings.

A Closer Look At The Fundamentals:

The fundamental story looks very promising for Sonos. After years of losing money, the company should become profitable in 2021 and is now the premier smart speaker for most homes. Earnings soared by 154% in the last quarter while revenue jumped by 16%. The company lost $0.18 in 2020 and is expected to make $0.68 in 2021! Looking forward, earnings are expected to jump to $0.86 in 2022!

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A Closer Look At The Technicals:

Technically, the stock is acting very well as it continues to hit new highs. Most recently, the stock enjoyed a big break-away gap in November on monstrous volume and never looked back. In the short-term, the stock is extended and due for a breather to consolidate its recent run.

Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.

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