Sonos SONO shares ended the last trading session 5.9% higher at $15.11. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.8% loss over the past four weeks.
Sonos’ share price increase can be attributed to optimism around its growth strategy. The company is focusing on driving durable growth through product innovation, stronger customer advocacy, focused marketing, geographic expansion and emerging demand trends. In the last earnings call, management stated that these initiatives are attracting new customers, encouraging existing users to expand their Sonos systems and supporting growth through a stronger product pipeline, improved system reliability and positive early reception for new products, including Sonos Play and Era 100 SL.
The company also highlighted the long-term opportunity within its installed base of more than 53 million connected devices across over 17 million homes. It expects customers to continue adding more devices over time while upcoming product launches, software enhancements and expansion in international markets further support growth.
Although higher memory costs remain a near-term headwind, Sonos has secured supply through multiple channels and is optimizing product designs to manage costs without affecting performance. Management remains focused on delivering durable growth through continued innovation, operational execution and AI-driven opportunities across its connected device ecosystem.
For the third quarter of fiscal 2026, the company expects revenue in the range of $355 million to $375 million, indicating year-over-year growth of 3% to 9%, with 6% growth at the midpoint. ???Momentum is expected to continue into the fourth quarter, supporting a stronger second-half performance and full-year growth in line with prior expectations.
This maker of wireless speakers and home sound systems is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +26.3%. Revenues are expected to be $366.75 million, up 6.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Sonos, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SONO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Sonos belongs to the Zacks Audio Video Production industry. Another stock from the same industry, GoPro GPRO, closed the last trading session 2.5% lower at $0.66. Over the past month, GPRO has returned -14.3%.
For GoPro, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.02. This represents a change of +125% from what the company reported a year ago. GoPro currently has a Zacks Rank of #3 (Hold).
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