Why Sonos Stock Is Trading Higher After Hours

Sonos Inc SONO shares are moving higher in extended trading Wednesday after the company reported better-than-expected financial results.

• Q2 Revenue: $373.36 million, beat estimates of $334.24 million
• Q2 EPS: 16 cents beat estimates for a loss of 20 cents

Revenues were up 0.4% year-over-year. Gross margin fell 130 basis points to 46%. Cash flow from operations came in at $8.9 million, while free cash flow was negative $7.8 million.

"Despite the challenging environment, we are winning in the market and I'm proud of our team's execution as we outperform the competition. We remain on track to deliver against our fiscal 2023 guidance," said Patrick Spence, CEO of Sonos.

Outlook: Sonos sees full-year 2023 revenue in the range of $1.64 billion to $1.66 billion versus estimates of $1.64 billion. Gross margin is expected to be between 44% and 44.2%, down from the company's prior outlook of 44.3% to 44.8%. 

Management will discuss these results on a conference call at 5 p.m. ET.

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SONO Price Action: Sonos shares were up 10.7% after hours at $17.32 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Sonos.