Can SONO maintain its EPS growth trend into Q3 2025?

Sonos' EPS growth trajectory into Q3 2025 is uncertain and depends on several factors:

1. **Current Financial Performance**: Sonos has experienced a significant decline in EPS, with a growth rate of -37.5% as of the end of Q1 2025 compared to the previous quarter. This indicates a challenging period for the company.

|code|Ticker|Name|Date|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|
|SONO|SONO.O|Sonos|2024 Q2|-133.33333333333337|185|
|SONO|SONO.O|Sonos|2024 Q3|116.66666666666667|185|
|SONO|SONO.O|Sonos|2025 Q1|-37.5|185|

2. **Market and Economic Conditions**: The broader market conditions, including potential tariffs affecting the supply chain, and the overall economic climate, will influence Sonos' financial performance. The company's focus on monitoring developments related to proposed tariffs and assessing implications for its business suggests that external factors could have a substantial impact on its EPS.
3. **Company-Specific Initiatives**: Sonos' response to these challenges, such as its supply chain diversification efforts and recent leadership changes, will play a crucial role in determining its future EPS growth. The appointment of Hugo Barra to the board is likely to bring fresh perspectives and potentially drive positive changes within the company.
4. **Analyst Forecasts**: Analysts have forecasted a significant potential upside for Sonos, with an average price target indicating a 62.17% potential upside from the current trading price. This suggests that while the near-term outlook might be challenging, the long-term view is more optimistic.
5. **Investor Sentiment and Recent Transactions**: Recent transactions by Coliseum Capital Management, which increased its stake in Sonos, indicate confidence in the company's potential. This could be a positive sign for Sonos' future performance, including its EPS growth.

In conclusion, while Sonos faces significant headwinds, including a decline in EPS and external market challenges, the company's strategic responses, potential for growth as indicated by analyst forecasts, and recent investor confidence may provide a foundation for a potential rebound in EPS growth into Q3 2025. However, this remains uncertain and will depend on the successful execution of the company's strategic plans and favorable market conditions.