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Sonos Posts Surprise Profit; Raises Guidance on Strong Sales Beat

Speaker and sound bar maker sees fiscal year revenue rising 25% to 29%.
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Sonos, Inc.  (SONO) - Get Report reported better-than-expected fiscal second-quarter earnings and raised guidance after the closing bell Wednesday as the maker of speakers and soundbars offered an upbeat view amid ongoing economic recoveries from the COVID-19 pandemic.

The company reported quarterly revenue of $332.9 million, vs. $175.1 million in the same period a year earlier. Non-GAAP diluted earnings per share came in at 31 cents vs. a loss of 34 cents a share a year earlier.

Sonos raised its full-year revenue guidance to a range of $1.625 billion to $1.675 billion. It had previously guided for revenue in a range of $1.525 billion to $1.575 billion.

The company reported GAAP earnings of 12 cents a share, vs. a loss of 48 cents a share a year earlier. Sonos had been expected to report a GAAP loss of 22 cents a share, on sales of $248.5 million, based on a FactSet survey of 6 analysts.

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The stock has risen 10.7% since the company last reported earnings on Feb. 10.

“Demand for our products continues to exceed even our heightened expectations,” said Sonos CEO Patrick Spence, in a statement. “Based on our outstanding second quarter performance, the continued strong demand for our products, and the power and profitability of our unique business model, we are raising our outlook for fiscal 2021 again."

Shares of Sonos jumped after the report. The stock rose $5.60, or 7.8% to $37.09 in after-hours trading Wednesday. In the regular session shares had fallen 9.7% amid a broad market selloff tied to renewed inflation fears on Wall Street. 

The company struggled early on in the pandemic, laying off workers and closing stores last summer.

TheStreet.com's Jim Cramer noted in February, however, that the company was benefiting from the effects of pandemic lockdowns