Smart speaker maker Sonos forecast sales above analyst estimates

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Smart speaker maker Sonos forecast sales above analyst estimates

Despite backlogs for its smart speakers due to supply constraints, Reuters forecast fiscal 2022 sales above analyst estimates.

Sonos expects to see sales of between $1.925 billion and $2 billion by the end of 2022, above Wall Street estimates of $1.86 billion, according to IBES data from Refinitiv.

For the fourth quarter of October 2, Sonos reported sales were $359.54 million and adjusted losses were 7 cents per share, a line with analyst expectations of $360.2 million in sales and adjusted losses of 7 cents per share, according to Refinitiv data.

Santa Barbara, California-based Sonos has fended off challenges from major tech companies such as Apple Inc., which tried to enter the market for premium-priced smart speakers but have since scaled back to lower price points. Sonos introduced Roam, a sub $200 product that aims to introduce the brand Sonos to a wider audience.

Sonos expects gross margins of 46% to 47% for fiscal 2022, in line with analyst expectations. In order to mitigate U.S. tariffs, the company has diversified its supply chain away from China to include Malaysian factories. It has worked through chip shortages and backups at U.S. ports this year.

Chief Executive Patrick Spence said the company imports its products via planes and ships, depending on the size.

Spence told Reuters that the uptick in air cargo is also a factor in the company's margin forecast, and that we've pushed on air to make sure we're meeting customer needs in the holiday period. We'll do whatever we can to sustainably bring products in and be smart about that. Sonos has finished a $100 million share buy-back program and will start a $150 million repurchase program.