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Sonos Shares Fall 13% After First Earnings Since August IPO

Shares of Sonos Inc. (SONO) fell more than 12% in extended session on Monday after the company reported a dismal results for the third quarter, the first time it is reporting quarterly results as a public company.

Sonos's shares had closed up 13.3% on Monday, its biggest one-day gain since its IPO in August, however, it fell 13.42% in after-hours trading following its fiscal third-quarter report.

The speaker maker's third-quarter loss widened to $26.99 million or $0.45 per share from $14.6 million or $0.26 per share. Analysts polled by Thomson Reuters estimated loss of $0.22 per share.

Revenues for the quarter dropped 6.6% to $208.4 million from $223.1 million last year. The company sold 886,514 products, about 11.4% increase from a year ago. Analysts had a consensus revenue estimate of $207.96 million.

According to the company, decline in revenues despite increase in products sold was due new product launches and/or product mix.

Looking forward to the full year 2018, the company expects revenues of $1.109 billion to $1.114 billion. Analysts currently estimate revenues of $1.11 billion.

Last month, Sonos shares began trading on the Nasdaq exchange. The company priced its IPO at $15 a share, below the targeted range of $17 to $19. Sonos raised about $208 million at a valuation of nearly $1.5 billion.

by RTTNews Staff Writer

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