Shares of audio products provider Sonos (NASDAQ:SONO) are surging today after the company posted an earnings beat for the first quarter. Revenues inched up 1.2% year-over-year to $672.58 million, surpassing expectations by ~$92.3 million.
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EPS at $0.79 too outperformed expectations by $0.20. During the quarter, the gross margin contracted by 540 basis points to 42.4%. On the other hand, free cash flow generation came in at a healthy $167.6 million.
Sonos continues to see robust demand and market share gains across key categories and geographies. For 2023, the company expects revenue to hover between $1.7 billion and $1.8 billion. Adjusted EBITDA is seen landing between $145 million and $180 million.
Overall, Wall Street has a consensus price target of $25 on SONO, implying a 24.1% potential upside in the stock. Shares of the company have already gained 14.3% over the past month now.
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