Sonos (SONO) Tops Q3 EPS by 44c, Raises FY Revenue Guidance

Sonos (NASDAQ: SONO) reported Q3 EPS of $0.27, $0.44 better than the analyst estimate of ($0.17). Revenue for the quarter came in at $378.7 million versus the consensus estimate of $313.6 million.

GUIDANCE:

Sonos sees FY2021 revenue of $1.695-1.71 billion, versus the consensus of $1.66 billion.

• Revenue increased to a range of $1.695 billion to $1.710 billion, representing growth in the range of 28% to 29% year-over-year (30% to 31% on a comparable basis excluding the 53rd week in fiscal 2020).
• This compares to our prior guidance range of $1.625 billion to $1.675 billion and our initial fiscal 2021 outlook provided at the start of the fiscal year of $1.44 billion to $1.5 billion.
• Adjusted EBITDA increased to a range of $270 million to $280 million representing growth in the range of 149% to 158%.
• This compares to our prior outlook of $225 million to $250 million and our initial fiscal 2021 outlook of $170 million to $205 million.
• Adjusted EBITDA margin increased to a range of 15.9% to 16.4%, representing a 770 to 820 basis point improvement year-over-year.
• This compares to our prior outlook range of 13.8% to 14.9% and our initial fiscal 2021 outlook of 12% to 14%.
• Gross margin increased to a range of 46.5% to 46.9%, representing a 340 to 380 basis point improvement year-over-year.
• This compares to our prior guidance range of 46.0% to 46.5% and our initial fiscal 2021 outlook of 45.3% to 45.8%.
• Our fiscal 2021 gross margin outlook includes tariff refunds of $11 million and tariff expense of $9 million recognized through the third quarter fiscal 2021. Minimal tariff expense and no further tariff refunds are assumed for the fourth quarter given timing uncertainty.

For earnings history and earnings-related data on Sonos (SONO) click here.

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