Sonos title is in free fall after first earnings report

Shares of Sonos Inc. are on the brink of their biggest single-day drop in history Tuesday, after the loudspeaker maker released a first-of-its-kind earnings report as a public company.

The Company's results for the June quarter were largely in line with expectations, as were the outlook for the September quarter. His bone

SO NO, -21.73%

stocks tumbled nearly 20% Tuesday after a rise of 13% of Monday's session.

Some analysts have ignored the report, arguing that the company should face a bigger test in the coming months. The holiday period is usually the strongest in Sonos, and this year it will offer a good view on the traction of the new Sonos Soundbar.

Do not miss: Sonos shares fall as analysts fear that GoPro or Fitbit will come out

The Company's outlook and results for the December quarter "will be a stronger catalyst for Sonos shares as they help investors better understand the acceptance of new products in the market (Beam, Sonos One) and the context competitive. only promises to be more cluttered, "wrote Matthew Sheerin, of Stifel, who estimates that the stock price is $ 20.

Read also: Why Sonos thinks that his hardware IPO will be different

Adam Tindle, an analyst at Raymond James, who outperformed his target and reached a $ 24 goal on the stock, said there was no "surprise" in the last quarter.

"While bearers may argue that declining margins are the result of commoditization of products and that profitability will remain difficult, we believe that these issues are essentially transitory, as MLCC prices and product launches

A shortage of MLCCs, or multilayer ceramic capacitors, has hit several electronics companies, Sterel Sheerin wrote in his overview of Sonos' financial situation.

Jefferies analyst Brent Thill acknowledged the quarter was not surprising, but he is somewhat worried about the performance of Sonos' new Beam product.

See also: Nearly half of US homes will have a smart speaker by the end of the year, according to Adobe.

"While judging against increased internal expectations, we would like to see a big product launch such as the Beam above expectations," wrote Thill, who holds a $ 23 holding rating and targets stocks. "Although the management does not think the Beam cannibalize Playbase / bar, the jury is aware of the opportunity to take advantage of the lower entry point of a TV sound bar."

Morgan Stanley's Katy Huberty was also disappointed on the Beam front. She wrote that the latest results "lacked transparency in Beam's sales, which is critical to stock performance."

The new products typically account for between 23% and 25% of Sonos' revenue, and she would like to see more visibility on beam pull before becoming more constructive on the stock. She maintained her equal weight rating and target price of $ 20.

Read: Arlo shares skyrocket in early IPO after investors have bet that subscription revenues will arrive soon enough

Of the six analysts monitored by FactSet that cover equities, three have purchase ratings and three have holding ratings. The average price target is $ 22.83, or 27% more than current levels.

Sonos recently changed hands at $ 17.08, 14% more than the company's IPO price in August of $ 15. The stock fell 7.6% over the past month, while the S & P 500

SPX, + 0.47%

climbed 2%.