Sonos stock rallies 10% after quarterly beat, but audio maker says market conditions have not returned to ‘normal’

Sonos Inc.
SONO,
-1.45%
shares zoomed more than 10% higher in the extended session Wednesday after the maker of audio and home-theater equipment reported better-than-expected revenue for its fiscal third quarter and tweaked guidance for fiscal 2023. Sonos lost $23.6 million, or 18 cents a share, in the quarter, compared with a loss of $597,000 last year, or breakeven on a per-share basis. Revenue rose 0.4% to $373.4 million, Sonos said. Analysts polled by FactSet expected Sonos to report a loss of 16 cents a share on sales of $336 million. Sonos revised its outlook for the fiscal year, calling for revenue between $1.64 billion and $1.66 billion. That compares with a previous outlook of revenue between $1.625 billion and $1.675 billion. Sonos guided for gross margin in a range between 44% and 44.2%, from a previous expectation of 44.3% to 44.8%. “Despite the challenging environment, we are winning in the market and I’m proud of our team’s execution as we outperform the competition,” Chief Executive Patrick Spence said in a statement. “While we have not yet seen conditions in our categories return to normal, we remain focused on ensuring Sonos can emerge from this period in a position of strength.” Shares of Sonos ended the regular trading day down 1.5%.