NEW YORK - Sonos (NASDAQ:SONO) Inc. has sparked a significant rally in its share price today, following the announcement of a new $200 million share buyback program. The audio technology company's move comes as a response to a challenging year that saw its shares drop by 21% since the beginning of the year.
The market reacted positively to the news, with Sonos shares climbing by 17% to $13.28. This uptick is a welcome change for the company, which has been working to navigate through a tough financial period.
This positive momentum builds on yesterday's fiscal fourth quarter results, where Sonos reported a reduced quarterly loss of $31.2 million or 25 cents per share after adjustments for one-time items. This performance exceeded the expectations of FactSet analysts and marked an improvement over last year's loss of $64.1 million.
Investors are showing renewed confidence in Sonos's potential for growth and stability, as evidenced by the stock's rebound. The introduction of the share buyback program seems to have been well-received as a strategic move to enhance shareholder value.
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