Why Sonos Stock Crashed 25% This Afternoon
Shares of Sonos (NASDAQ: SONO) cratered this morning after the popular speaker maker reported a big sales miss last night (but an earnings beat) -- and a key executive's resignation. Analysts had predicted Sonos would report $0.07 per share in pro forma profits for its fiscal third quarter and $423.2 million in sales. But while Sonos exceeded the profits prediction with a reported $0.19 per share, its sales came in well below estimates at just $371.8 million.
And now Sonos stock is down 24.8% as of 2:25 p.m. ET.
Analysts had expected Sonos' revenue to rise at least somewhat in Q3, but revenue slipped 2% instead. Adding to the bad news, the company's per-share profit was only of the pro forma variety -- and one-third less pro forma profit than it reported in fiscal Q3 2021. Moreover, when calculated according to generally accepted accounting principles (GAAP), Sonos only broke even for the quarter with a per-share profit of $0.00 -- down from $0.12 a year ago.
Source Fool.com
