Sonos Q3 profit jumps 52% on IEEPA tariff refunds

Overview

• Audio equipment maker's fiscal Q3 revenue rose 9% yr/yr to $375 mln

• Adjusted EPS for fiscal Q3 rose 52% yr/yr to $0.27

• Company repurchased $30 mln of shares in the quarter

Outlook

• Company will provide guidance on its Q3 fiscal 2026 earnings call

Result Drivers

• LEANER OPERATIONS - Co said results benefited from a leaner, more focused business and disciplined execution over the past 18 months, per CEO Tom Conrad

• COST CONTROL - Co cited disciplined execution and structurally improving the business as supporting margin and profit growth, per CFO Saori Casey

• NON-RECURRING TARIFF REFUNDS - Co's GAAP gross profit and net income included a non-recurring benefit from IEEPA tariff refunds

Company press release: ID:nBwbw4w4ba

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the household electronics peer group is "hold."

• Wall Street's median 12-month price target for Sonos Inc is $19.50, about 16.1% above its July 28 closing price of $16.80

• The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 34 three months ago

Reuters Recommended Reads

• July 28 - Skyworks beats Q3 revenue, adjusted EPS estimates; sets $2 bln buyback

• July 27 - Netherlands' Philips lifts annual profit, cash flow outlook after US tariff refund

• July 29 - Electronic gear maker Amphenol forecasts upbeat quarterly revenue on data center demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)