Shares of Sonos (SONO) closed higher after the company posted first-quarter results that Wall Street estimates, with revenue of $612.9 million versus an expected $587 million. The company forecasted that margins and cash flow would continue to improve in 2024.

Yahoo Finance Anchors Josh Lipton and Julie Hyman break down the latest development for Sonos and what it means for the company moving forward.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Nicholas Jacobino

Video Transcript

JOSH LIPTON: Check out Sonos shares. They are surging after blowing past Wall Street expectations in the first quarter. Sonos also expecting improvement in margins and cash flow to continue in 2024. So stocks jump and earnings beat, Q1 EPS $0.84, Street was at 58. So easy beat, revenue also better than expected, Julie, sounds like an especially strong holiday season for these guys.

JULIE HYMAN: Yeah, definitely, that is part of it here. And it looks like analysts are still looking for more products from Sonos as well. There's some--

JOSH LIPTON: Big new ones maybe on the way.

JULIE HYMAN: Optimism around that. There's some speculation around headphones. There's some kind of other category here. This is a Brian Sozzi favorite. He and I both have way too many Sonoses in our homes. And we've spoken to Patrick Spence, the CEO of the company, about it before, and tried to get out of him what this new product category is going to be.

JOSH LIPTON: The clues do suggest headphones, to your point. That's what they're saying, yeah.

JULIE HYMAN: I don't know if I would be as much in the market for something like that. But, again--

JOSH LIPTON: Some maybe will. Analysts, by the way, some at least thought their guidance was kind of conservative, because they say that big product could be coming.

JULIE HYMAN: Yeah, well, we'll see.