Sonos, Inc. SONO has unveiled two products as part of its efforts to move on from the app redesign fiasco. It introduced the Sonos Arc Ultra, a premium soundbar equipped with advanced Sound Motion transducer technology, and the Sonos Sub 4, an upgraded version of their classic subwoofer designed to deliver immersive bass for movies and shows. Both the Arc Ultra and Sub 4 will be available starting Oct. 29, 2024, priced at $999 and $799, respectively.

Sonos’ New Products Designed to Boost Sound Quality

The Arc Ultra soundbar incorporates cutting-edge technology to enhance sound, offering strong bass and an immersive Dolby Atmos experience. With the introduction of Sound Motion, Sonos seeks to expand the capabilities of a single speaker, making it ideal for home theater setups where high-quality sound is essential and modern design matters. This innovation reduces the transducer size while significantly boosting bass, delivering up to twice the bass of the previous model and an impressive 9.1.4 spatial audio experience. Trueplay allows for sound adjustments tailored to your space, and the upgraded center channel ensures clear dialogue, which can be customized through the Sonos app.

Setting up the Arc Ultra is easy with an HDMI eARC connection, and it can be controlled using TV remote, the Sonos app, Sonos Voice Control and Amazon Alexa. Designed with sustainability in mind, it uses less silicone, fewer adhesives and halogen-free PCB materials. It also has a 20% lower idle power consumption as a standalone player than Arc. It comes with fully recyclable and smaller packaging for efficient shipping.

The Sub 4 is the latest subwoofer designed to deliver deep, impactful bass for an enhanced home theater experience. It features dual custom woofers that produce deep low frequencies without distortion, along with improved processing and connectivity. Retaining its iconic design, the Sub 4 now boasts a sleek matte finish and a more sustainable design, reducing idle power consumption by nearly 50%. When paired with the Arc Ultra, Arc, or Beam, it adds dramatic depth to sound quality for movies and music. Users can connect two Sub 4 units for even more powerful bass, added Sonos.

Updates Regarding Sonos App 

In October 2024, Sonos took significant steps to regain customer trust after an internal review of its May app release. The company made seven new commitments to deliver top-quality wireless audio systems that align with the brand's reputation.  

In this regard, Sonos is focusing on enhancing its new app, releasing a software update alongside the Arc Ultra and Sub 4. This update aims to improve performance over the previous version, especially for new users setting up devices and grouping Sonos products. Current customers will benefit as well, with 90% of the previously missing features being restored and more updates planned for the future.

Sonos, Inc. Price and Consensus

Sonos, Inc. price-consensus-chart | Sonos, Inc. Quote

Headquartered in Santa Barbara, CA, Sonos operates as a consumer electronics company primarily involved in manufacturing speakers with immersive sound experiences.

In the third quarter, the company generated revenues of $397.1 million, indicating a 6% increase from the previous year. Sonos speakers contributed 75.8% of total revenues, largely due to the introduction of the Sonos Ace in June 2024 and strong sales of the Era 100. Sales of Sonos system products also grew 17.1%, driven by improved sales in the installed solutions channel. Sonos also expects to capture a larger share of the $100 billion audio market.However, forex volatility and volatile supply chain dynamics remain headwinds.

SONO’s Zacks Rank & Stock Price Performance

SONO currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 6.3% in the past year compared with the sub-industry's growth of 7.1%.

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the broader technology space are Itron, Inc. ITRI, Cirrus Logic, Inc. CRUS and SS&C Technologies Holdings, Inc. SSNC.  ITRI & CRUS presently sport a Zacks Rank #1 (Strong Buy), whereas SSNC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Itron is a technology and services company and one of the leading global suppliers of a wide range of standard, advanced, and smart meters and meter communication systems. It delivered an earnings surprise of 57%, on average, in the trailing four quarters. In the last reported quarter, ITRI pulled off an earnings surprise of 26%. 

Cirrus Logic’s performance is driven by increasing shipments in the smartphone market. Steady momentum in the laptop market and standout next-generation flagship smartphone design cushion the top line. CRUS delivered an earnings surprise of 56.6%, on average, in the trailing four quarters.

SS&C Technologies Holdings delivers investment and financial management software and related services focused exclusively on the financial services industry. It delivered an earnings surprise of 3.1%, on average, in the trailing four quarters. In the last reported quarter, SSNC pulled off an earnings surprise of 4.9%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Itron, Inc. (ITRI) : Free Stock Analysis Report

Sonos, Inc. (SONO) : Free Stock Analysis Report

Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report

SS&C Technologies Holdings, Inc. (SSNC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research