Sonos’ Stock Falls as Much as 15% After Announcing Its CFO Will Depart
Sonos’ stock fell as much as 15% late Wednesday after the company said that its chief financial officer, Mike Giannetto, will leave the company later this year.
The announcement came as Sonos reported revenue and earnings that were above analyst expectations. Sonos said that revenue in its most-recent quarter rose 5.8% to $ 496.4 million and net income of 55 cents a share. Analysts had been forecasting revenue of $ 490.7 million and earnings of 40 cents a share.
Giannetto, who has worked at Sonos for more than seven years, is leaving Sonos once a replacement can be named. The company said it hired an executive search firm to find a new CFO.
The company also warned that revenue in the current quarter could come in lower than expectations. “Reduced sell-through velocity toward the end of Q1 FY2019 created higher channel inventory levels than we would have liked,” Sonos’ letter to shareholders said. “This elevated channel inventory and our production schedule with IKEA starting in Q3 FY2019 instead of Q2 FY2019 will impact Q2 revenue.”
Sonos didn’t offer guidance for this quarter’s revenue, but indicated that overall guidance for 2019 remains close to analyst expectations. Sonos is expecting revenue to rise between 10% and 12% this year to between $ 1.25 billion and $ 1.28 billion. Analysts had been forecasting 2019 revenue of $ 1.26 billion.
Sonos’ stock, which declined 6% during official trading Wednesday, fell as much as 15% to $ 10.42 a share in after-hours trading on the announcement.