Sonos reported fourth-quarter revenue that was above Wall Street's estimates
Sonos Inc (NASDAQ:SONO) stock is 5.3% higher at $14.83, earlier rising as high as $15.69 after the audio equipment maker's adjusted fourth-quarter loss of 18 cents per share was in line with estimates and revenue of $255.4 million beat analysts' beat forecasts.
Sonos is still trying to put out the fire set by launching its overhauled mobile application before the software was ready, with the company saying in its earnings presentation that "we have released 16 updates and restored 90 percent of missing features." CEO Patrick Spence praised the recovery efforts, which he said allowed the company to release its Arc Ultra and Sub 4 products in time for the holiday season.
Following the event, Jefferies and Craig-Hallum hiked their price targets to $18 and $15, respectively. Both are in line or above SONO's average 12-month price objective of $15.20, a slim 2.3% premium to current levels.
Options traders are making a lot of noise in the security's otherwise quiet options pits. Already today, 2,230 calls and 4,965 puts have traded hands, which is 18 times the average intraday volume. The most activity by far is taking place at the November 15 put, followed distantly by the 15 call in the same monthly series.
On the charts, Sonos stock is contending with pressure at the $15 level, which rejected the security in late July. The shares are also pacing for a third win in four sessions, as it looks to lock in its third-straight weekly gain -- its best such streak since March. Since the start of 2024, SONO is down 13.1%, but it sports a 31.2% year-over-year lead.