The smart-speaker maker faces a David-versus-Goliath patent case with Google, but BI is optimistic Sonos will succeed in the dispute, which goes to a jury trial in May. If it secures a royalty agreement for Google’s use of its patented wireless speaker technology, Sonos could top consensus estimates of earnings before interest, taxes, depreciation and amortization by at least 20%. The looming risk of a large damages award could encourage Google to settle.
