Sonos May Not Even Need Apple After Its Q4 Results

When Sonos Inc. (NASDAQ: SONO) reported its most recent quarterly results after the closing bell on Wednesday, the speaker maker said that it had $0.33 in earnings per share (EPS) on $339.8 million in revenue. The consensus estimates had called for EPS of $0.15 on $299 million in revenue, and the fiscal fourth quarter from last year reportedly had a net loss of $0.15 per share and revenue of $294.1 million.

During the latest quarter, revenue increased 16% year over year. However, excluding the impact of the 14th week of the quarter, revenue increased roughly 7% from last year.

Note that Apple Inc. (NASDAQ: AAPL) usually pushes Sonos speakers as part of its ecosystem. With this great surge of sales, Sonos may not be so reliant on Apple after these results.

The year-over-year gains that Sonos made on the bottom line were really what pulled the company through this quarter. The adjusted earnings before interest, taxes, depreciation and amortization increased to $46.4 million from a loss of $2.8 last year. Also, the adjusted EBITDA margin increased to 13.7% from −0.9% last year.

Management said that the company has reached an inflection point in the fourth quarter that demonstrates the power and profitability of its model.

The company said cash and cash equivalents totaled $407.1 million at the end of the quarter, up from $338.6 million at the end of the previous year.

Also, the company completed its previous $50 million share repurchase program during the fourth quarter in which it purchased 3.8 million shares. Now the board of directors has authorized a new common stock repurchase program of up to $50 million.

Looking ahead to the fiscal 2021 full year, the company expects to see revenue in the range of $1.44 billion to $1.5 billion and adjusted EBITDA between $170 million and $205 million. Analysts expect $0.12 in EPS and $1.38 billion in revenue for the year.

Sonos stock traded up about 25% at $21.41 on Thursday, in a 52-week range of $6.58 to $22.32. The consensus price target is $16.43.

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