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Sonos Posts Surprise Quarterly Profit, Revenue Outlook Above Estimate

Sonos, the producer of high-end speakers, reported a surprise swing to quarterly profit on 52% higher revenue.

Sonos  (SONO) - Get Sonos, Inc. Report, the producer of high-end speakers, reported a surprise swing to fiscal-third-quarter net income from a year-earlier loss on 52% higher revenue.

For the quarter ended July 3, the Santa Barbara, Calif., company earned 12 cents a share, compared with a loss of 52 cents a share in the year-earlier quarter. The latest adjusted earnings were 27 cents a share.

Shares outstanding climbed 32% to 144.2 million.

Revenue reached $378.7 million from $249.3 million. 

A survey of analysts by FactSet produced consensus estimates of a GAAP loss of 17 cents a share, or an adjusted loss of 6 cents a share, on revenue of $315.2 million.

At last check Sonos shares rose 10% to $38.39. They'd finished regular Wednesday trading off 1.2% at $34.80. 

The shares have tripled off their 52-week low of $12.40, set in early September. The 52-week high is $44.72, set in mid-April.

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Gross-profit margin widened three percentage points in the quarter to 47%.

Chief Executive Patrick Spence cited three key macro trends that Sonos plans to ride to growth. 

-- The "continued increase in audio-content consumption and new audio formats that are emerging."

-- "[With] more video content going direct to home, consumers are demanding a theater-like audio experience in the home."

-- "[The] untethering of people from their offices [enables] flexibility on how and where to live," which will drive "continued investment in the home."

For fiscal 2021 Sonos expects revenue to range $1.7 billion to $1.71 billion, or growth of 28% to 29% from a year earlier. 

The FactSet survey produced a consensus estimate of $1.67 billion for the year.

And the company expects gross margin to widen 3.4 to 3.8 percentage points from a year earlier, to a range of 46.5% to 46.9%.