As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the consumer electronics industry, including Sonos (NASDAQ:SONO) and its peers.
Consumer electronics companies aim to address the evolving leisure and entertainment needs of consumers, who are increasingly familiar with technology in everyday life. Whether it’s speakers for the home or specialized cameras to document everything from a surfing session to a wedding reception, these businesses are trying to provide innovative, high-quality products that are both useful and cool to own. Adding to the degree of difficulty for these companies is technological change, where the latest smartphone could disintermediate a whole category of consumer electronics. Companies that successfully serve customers and innovate can enjoy high customer loyalty and pricing power, while those that struggle with these may go the way of the VHS tape.
The 4 consumer electronics stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was in line.
While some consumer electronics stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.3% since the latest earnings results.
Best Q4: Sonos (NASDAQ:SONO)
A pioneer in connected home audio systems, Sonos (NASDAQ:SONO) offers a range of premium wireless speakers and sound systems.
Sonos reported revenues of $550.9 million, down 10.1% year on year. This print exceeded analysts’ expectations by 5.2%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
“Yesterday we implemented important organizational changes that mark the start of a new chapter of efficiency and growth for Sonos,” said Tom Conrad, Sonos Interim CEO.
Sonos scored the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 2.6% since reporting and currently trades at $13.88.
Is now the time to buy Sonos? Access our full analysis of the earnings results here, it’s free.
GoPro (NASDAQ:GPRO)
Known for sponsoring extreme athletes, GoPro (NASDAQ:GPRO) is a camera company known for its POV videos and editing software.
GoPro reported revenues of $200.9 million, down 32% year on year, outperforming analysts’ expectations by 0.8%. The business performed better than its peers, but it was unfortunately a mixed quarter with an impressive beat of analysts’ EPS estimates but a miss of analysts’ cameras sold estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 17% since reporting. It currently trades at $0.92.
Is now the time to buy GoPro? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Apple (NASDAQ:AAPL)
Creator of the iPhone and shepherd of the App Store, Apple (NASDAQ:AAPL) is a legendary developer of consumer electronics and software.
Apple reported revenues of $124.3 billion, up 4% year on year, in line with analysts’ expectations. It was a mixed quarter: Apple’s total revenue met analysts’ expectations, but looking under the hood, we can see its Services segment outperformed. This business line helped the company beat Wall Street's operating income and EPS estimates because it has higher margins than its hardware-oriented Products segment.
Apple delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. The stock is down 3.7% since the results and currently trades at $228.87.
Read our full analysis of Apple’s results here.
Peloton (NASDAQ:PTON)
Started as a Kickstarter campaign, Peloton (NASDAQ: PTON) is a fitness technology company known for its at-home exercise equipment and interactive online workout classes.
Peloton reported revenues of $674 million, down 9.4% year on year. This print beat analysts’ expectations by 2.9%. Overall, it was a very strong quarter as it also produced EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates.
The stock is up 10.1% since reporting and currently trades at $8.37.
Read our full, actionable report on Peloton here, it’s free.
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