Why Sonos Stock Got Smacked Down Today
Shares of premium audio company (NASDAQ: SONO) got smacked down on Thursday after the company reported financial results for its latest quarter and lowered its full-year guidance. As of noon ET, Sonos stock was down 24%.
After the market closed yesterday, Sonos reported financial results for its fiscal second quarter of 2023, which ended on April 1. Revenue of $304 million was down a sharp 24% year over year. Surprisingly, this was above expectations from Wall Street although it was in line with management's outlook.
However, profitability was a different story for Sonos. To start, its gross margin declined to 43.3% compared to a gross margin of 44.8% in the prior-year period. Management cited higher sales of lower-margin products and an increase of inventory reserves.
Source Fool.com
Sonos Inc Stock
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With a target price of 18 € there is a positive potential of 29.08% for Sonos Inc compared to the current price of 13.95 €.
