Sonos Announces CEO Transition: The Details

Editor’s note: The headline of this story has been corrected to reflect that Sonos stock is trading lower Monday morning.

Sonos Inc SONO shares are trading lower Monday after the company announced a CEO transition.

What Happened: Sonos on Monday announced that Patrick Spence will step down from his role as CEO and as a member of Sonos’ board. Tom Conrad has been appointed as interim CEO while the board conducts a search for its next CEO.

“Tom’s mandate is to improve the Sonos core experience for our customers, while optimizing our business to drive innovation and financial performance. With his deep product expertise and long-term relationship with Sonos, Tom is uniquely suited to guide the company forward during the transition and the Board looks forward to partnering with him closely. We are excited about the opportunity ahead,” said Julius Genachowski, chair of the Sonos board.

Sonos noted that the CEO transition is not expected to impact the company’s first-quarter financial results, which will be reported on Feb. 6.

Analysts currently expect the company to report earnings of 14 cents per share and quarterly revenue of $519.475 million, according to estimates from Benzinga Pro.

See Also: Nvidia Down 3%, AMD Falls 2% After White House Imposes New AI Chip Export Restrictions

Is SONO A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Sonos‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Sonos does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Sonos will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

SONO Price Action: Sonos shares were down 8.06% at $13.35 at the time of publication, according to Benzinga Pro.

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