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Sonos jumps 21% as strong pandemic sales prompt earnings beat

Isabelle Lee   

Sonos jumps 21% as strong pandemic sales prompt earnings beat
Stock Market1 min read


Shares of Sonos jumped as much as 21% on Thursday after a strong quarterly earnings report.

The speaker-maker reported adjusted earnings-per-share of $1.17 in the fiscal first quarter, beating the consensus analyst estimate of $0.98. Sonos also lifted its full-year revenue forecast to between $1.53 billion and $1.58 billion, putting its full expected range above forecasts.

The company reported revenue of $645.6 million during the period, beating Wall Street estimates and marking a roughly 15% year-over-year increase.

"We made big gains on both fronts in this quarter," said Patrick Spence, company president and chief executive officer. "We added a record number of new homes, and we saw our existing customers return to add additional products at a record level.

Despite some supply shortages, Spence said the growth of the company, known for its smart speakers, can be attributed to an increase in demand, accelerated direct-to-consumer efforts, and various new partnerships.

In January, Sonos announced a new line-up of exclusive artist stations and original programming that will be offered to Sonos Radio and Sonos Radio HD, an advertising-free, high-definition streaming tier of its popular streaming radio service, Sonos Radio.

Morgan Stanley Research Analyst Katy Huberty also believes that as constraints ease and retail stores re-open, momentum for Sonos will build in 2021. Sonos remains her top small-cap hardware pick for this year.

Read more: Bank of America shares 9 stocks to buy as the pandemic prompts consumers to shift their spending habits towards 'solitary leisure' activities like golf and biking

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