Strategy in TECH...
On Tuesday, after the close of financial markets, Masimo Corporation (Nasdaq: MASI) announced its financial performance for the fourth quarter and full year of Fiscal 2024. Consolidated revenues grew a mere 2%, and the company booked a net loss of $304.9 million. And yet, investors were thrilled, driving up the value of shares of MASI stock by a double-digit percentage on the first trading day after the announcement.
What?!?!
Resideo Technologies, Inc. (NYSE: REZI) reported its financial performance in the fourth quarter and full year of Fiscal 2024, the period that ended on December 31, 2024. The company showed good growth, much of which was thanks to its June 2024 acquisition of Snap One, which contributed $553 million to its net revenues.
However, that revenue win was not pain free…
Sonos, Inc. (Nasdaq: SONO) Chief Executive Officer Patrick Spence did his best to sound upbeat and exuberant recently as he discussed the company’s results for its fourth quarter (4Q) and full year of Fiscal 2024 on an earnings call with financial analysts. Although most expected poor results in the wake of recent challenges, the numbers were particularly rough as the company is struggling against market headwinds in the audio segment, a less-than-satisfying rollout of what it had hoped would be a blockbuster new product in a blockbuster new category (Ace headphones), and most vexingly, from its own self-inflicted wound with a horribly botched app rollout.
Spence faced a tough sell to analysts, even with reduced expectations, as the numbers were quite disappointing.
On Wednesday, Masimo Corporation (Nasdaq: MASI) reported its financial results for the second quarter of fiscal year 2024 and the company’s Healthcare division showed solid signs of regaining traction as it continues to power out of the post-COVID doldrums of the last eighteen months to two years. Investors cheered the results by driving up shares of the company’s stock by more than 11%. However, the Non-Healthcare division (Sound United) continues to be troubled with revenues declining 13% in the quarter.
Emerald Holding, Inc. (NYSE: EEX), the parent company of Emerald Expositions, one of the country’s largest B2B tradeshow exposition companies, reported its Fiscal 2023 fourth quarter and full-year results. The results were mixed with full-year revenues growing by 17.5% compared to Fiscal 2022, but profits collapsing by 102% to a Net Loss.
Company management expressed extreme optimism on a call with financial analysts, but its stock value dropped dramatically the day it released these numbers.
After the close of markets on Wednesday, Sonos released its Fiscal 2023 fourth quarter (Q4) and full-year results. As one of the industry’s top consumer brands, Sonos’ latest quarterly and full-year earnings put the post-COVID strain in full display as the company was hit with both sales and profit declines even though it took aggressive steps to adjust to an adverse consumer market.
The company says loyal customers are its greatest buffer against macroeconomic headwinds, but those headwinds were particularly daunting in 2023.
WiSA Technologies, Inc. (NASDAQ: WISA) released its fiscal 2022 fourth quarter and full-year results and it was not a pretty picture – leading the company’s auditors to issue a “going concern” warning, questioning its ability to continue. A developer and licensor of spatial, wireless sound technology used in a variety of brands, WiSA largely blamed an overall slackening consumer demand causing a glut of existing CE product inventory as the main source of its problems.
Snap One Holdings Corp. (NASDAQ: SNPO) released their fiscal 2022 fourth quarter and full-year results after the close of the market on Tuesday and held a conference call for investment analysts shortly afterward with more details. The company produced a prodigious amount of data that they suggest shows success in the face of adversity, and forecast a decline in their performance in fiscal 2023.
They also said the industry slowed down in 2022 and will continue to be slow for the first three quarters of 2023.
On Tuesday, Masimo Corporation (Masimo) (NASDAQ: MASI) announced the results for its fiscal 2022 fourth quarter and full-year periods. Calling 2022 a “momentous year” for the company, management noted strong revenue growth – mostly from its acquisition of Sound United – as well as several adjusted figures exceeding forecast.
At the end of last week, Snap One Holdings Corp. released the results of their fiscal 2022 first quarter, a period which ended April 1, 2022, with comparisons to the same quarter last year, which ended on March 26, 2021. The company showed good revenue growth in the quarter but is still dealing with a net loss – albeit less of one than in 2021.
