Why Is Sonos (SONO) Down 0.9% Since Last Earnings Report?

A month has gone by since the last earnings report for Sonos (SONO). Shares have lost about 0.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Sonos due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Sonos Q2 Earnings Fall Y/Y

Sonos reported second-quarter fiscal 2023 non-GAAP earnings of 4 cents per share compared with 26 cents in the prior-year quarter. On a GAAP basis, the company reported a loss of 24 cents against the earnings of 6 cents reported in the year-ago quarter. The Zacks Consensus Estimate was pegged at a loss of 14 cents.

Quarterly revenues decreased 23.9% (down 22.4% on a constant-currency basis or cc) year over year to $304.2 million due to weak consumer demand. Tougher year-over-year comparison owing to backlog fulfillment and timing of channel fill in the prior-year quarter added to the woes. Unfavorable foreign exchange movements affected sales by $6 million. However, the top line beat the Zacks Consensus Estimate by 3.5%.