Sonos shares up after strong earnings report
Sonos saw a record second quarter as it reported $17.2 million in net income on May 12, up from a steep loss the year before, and beat analysts’ expectations.
The Santa Barbara-based home sound system producer went from a net loss of $52.3 million, or 48 cents per share, in the second fiscal quarter of 2020 to a $17.2 million gain, or 12 cents per share, a year later. Revenue increased 90% in that time, hitting $332.9 million in 2021.
Investors expected a loss of 22 cents per share.
Sonos shares closed at $33.83 on May 13, the day after the earnings announcement, up 7.4% from the previous day.
“Our increased fiscal 2021 revenue outlook still assumes Sonos will account for only approximately 9% of the total spend in the $18 billion premium home audio market, and an even smaller fraction of the broader $89 billion global audio market we expect to expand into over the long-term,” said CEO Patrick Spence in a press release. “We are truly just scratching the surface toward realizing our long-term opportunity. The future is bright for Sonos.”
Sonos’ second quarter ended April 3, before its newest product, the Roam portable speaker, began shipping on April 20. Pre-orders for the Roam started during the second quarter, in March.
In light of the higher sales numbers, Sonos is now expecting its earnings before interest, taxes, depreciation and amortization to reach a range of $225 million to $250 million for the year, up from its prior estimate of $195 million to $225 million.