Sonos, Inc. (NASDAQ:SONO) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.6% to hit US$375m. Sonos also reported a statutory profit of US$0.25, which was an impressive 525% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Taking into account the latest results, the most recent consensus for Sonos from four analysts is for revenues of US$1.62b in 2027. If met, it would imply a notable 8.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 50% to US$0.72. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.60b and earnings per share (EPS) of US$0.62 in 2027. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the decent improvement in earnings per share expectations following these results.

The consensus price target was unchanged at US$19.13, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Sonos, with the most bullish analyst valuing it at US$21.00 and the most bearish at US$16.50 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Sonos is forecast to grow faster in the future than it has in the past, with revenues expected to display 6.7% annualised growth until the end of 2027. If achieved, this would be a much better result than the 4.9% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.8% per year. So it looks like Sonos is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sonos' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$19.13, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Sonos analysts - going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Sonos has 1 warning sign we think you should be aware of.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.