Sonos Soars After Hiking Forecast on Strong Speaker Sales
(Bloomberg) -- Sonos Inc. rallied after raising its annual revenue forecast and posting quarterly earnings that surpassed Wall Street expectations, buoyed by elevated demand for its speakers from homebound consumers. The stock rose as much as 20% in postmarket trading.
The Santa Barbara, California-based company topped all estimates on multiple metrics, including revenue, adjusted Ebitda and earnings per share. For the quarter that ended April 3, it generated $332.9 million in sales, compared with consensus estimate of $248.3 million.
On the guidance front, the company lifted its fiscal 2021 revenue forecast to a range of $1.625 billion to $1.675 billion, up $100 million from the prior range. Gross margin outlook was also boosted amid a worsening global chip shortage, shipping delays and rising raw material prices.
Sonos has no plans to change pricing and can “manage through” the supply chain constraints, Chief Executive Officer Patrick Spence said in an interview.
Sales of Roam, the new portable speaker that Sonos announced in March, was not included in the quarterly results as it didn’t hit the market until April, but pre-orders for the device were more than 150% of the company’s target, Spence said. He expects the product to benefit from the reopening of the economy as more people enjoy music on-the-go.
“As the world reopens, I think Roam is going to be the perfect product,” Spence said.
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