A Look Back at Consumer Electronics Stocks’ Q3 Earnings: Sonos (NASDAQ:SONO) Vs The Rest Of The Pack

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Sonos (NASDAQ:SONO) and the rest of the consumer electronics stocks fared in Q3.

Consumer electronics companies aim to address the evolving leisure and entertainment needs of consumers, who are increasingly familiar with technology in everyday life. Whether it’s speakers for the home or specialized cameras to document everything from a surfing session to a wedding reception, these businesses are trying to provide innovative, high-quality products that are both useful and cool to own. Adding to the degree of difficulty for these companies is technological change, where the latest smartphone could disintermediate a whole category of consumer electronics. Companies that successfully serve customers and innovate can enjoy high customer loyalty and pricing power, while those that struggle with these may go the way of the VHS tape.

The 4 consumer electronics stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 2.3% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Sonos (NASDAQ:SONO)

Sonos reported revenues of $255.4 million, down 16.3% year on year. This print exceeded analysts’ expectations by 2.8%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates.

“Thanks to our team going all-in on our app recovery efforts, we made significant progress in bringing the quality of our software to a level that we’re all proud of, which enabled us to launch our highly anticipated new products, Arc Ultra and Sub 4, in time for the holidays,” Sonos CEO Patrick Spence commented.

Sonos scored the biggest analyst estimates beat but had the slowest revenue growth of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $13.95.

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Best Q3: GoPro (NASDAQ:GPRO)

GoPro reported revenues of $258.9 million, down 12% year on year, outperforming analysts’ expectations by 1.5%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 28.7% since reporting. It currently trades at $1.04.

Weakest Q3: Apple (NASDAQ:AAPL)

Apple reported revenues of $94.93 billion, up 6.1% year on year, exceeding analysts’ expectations by 0.5%. It was a mixed quarter: Despite roughly in line revenue, it was encouraging to see Apple top analysts’ operating income expectations this quarter. On the other hand, the all-important Services segment missed on the revenue line.

Interestingly, the stock is up 2% since the results and currently trades at $229.90.

Peloton (NASDAQ:PTON)

Peloton reported revenues of $585.9 million, down 1.6% year on year. This result surpassed analysts’ expectations by 2.5%. It was a very strong quarter as it also produced EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates.

The stock is up 23.7% since reporting and currently trades at $8.22.

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This content was originally published on Stock Story