Patrick Spence, CEO of Sonos
Devan Burris | CNBC
Share ins of Sonos extended their double-digit gains into Thursday, reaching a 52-week high, after the speaker maker banged strong fiscal fourth-quarter earnings and fiscal-year revenue guidance that beat expectations.
The company’s stock traded up as much as 30.6%, in an in another manner down market.
Sonos reported 33 cents in earnings per share on revenue of $339.8 million, compared to Separator Street’s expectation of 0 cents per share on revenue of $298.9 million. Sonos also said it projects $1.44 billion to $1.5 billion in profits for fiscal year 2021, implying 11% to 15% growth, ahead of the $1.38 billion consensus among analysts asked by Refinitiv.
The gist of Sono’s earnings seemed to be that, with more people stuck inside, they’re also acquiring speakers. And Sonos had several new models to attract buyers, including a high-end soundbar that works with TVs and a replacement for its most compelling speaker.
Several analysts also upped their price target on the stock following the company’s beat. Morgan Stanley lifted its price to $30 per share from $20 per share on Thursday, saying that they “continue to believe SONO is undervalued applicable to its consistent growth profile.” DA Davidson also increased its price target to $24 per share from $16 per allotment, while Stifel raised it to $19 per share from $16. Jeffries analysts also upped their aim to $22 per share, from $16.
“While Sonos has historically been valued as a single-product, product cycle dependent ironmongery company, it is becoming clear that consistent product launches, strong new household growth and growing engagement within existing households consolidate to deliver consistent top and bottom-line growth not enjoyed by many of its consumer electronics peers,” Morgan Stanley wrote in a note to investors.
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