Sonos Inc. catches analysts’ attention after delivering blowout quarterly performance
The company posted a profit of 15 cents per share for the quarter, significantly higher than 2 cents per share estimated by analysts
avatar
Staff or Guest writer for The Dog of Wall Street.
2020-11-19 11:47

Sonos Inc. (SONO) shares skyrocketed more than 27 percent in the mid-day trading Thursday after the manufacturer of wireless home audio products reported fourth-quarter earnings and revenue well above consensus forecast, mainly due to higher demand in the pandemic. 

The Santa Barbara, California-based company posted a profit of 15 cents per share for the quarter, significantly higher than 2 cents per share estimated by analysts. Revenue of $339.8 million was also way ahead of $298.8 million forecasted by analysts.

Direct-to-consumer sales climbed 84 percent, accounting for 21 percent of the overall revenue versus just 12 percent last year. 

The company received a couple of upgrades following the strong quarterly performance. Analyst at RBC Capital Market, Robert Muller raised his price target for the stock to $24 per share from $19 per share. Separately, Stifel analyst Matthew Sheerin also lifted the price target for Sonos to $19 per share from $16 per share, while maintaining a “Hold” rating. 

Speaking on the results, Sonos CEO Patrick Spence said “we ended fiscal 2020 on an exceptional note and delivered meaningfully ahead of our expectations. In light of the uncertainty and challenges presented throughout this past year, the entire team at Sonos has risen to the occasion and proven an ability to creatively adapt and persevere.”

The company provided an upbeat outlook for the next fiscal year. It expects 2021 revenue in the range of $1.44 billion to $1.5 billion, as compared to consensus forecast of $1.38 billion. 

Sonos (NASDAQ: SONO) shares hit a new 52-week high of $22.10 on Thursday morning after the strong quarter performance. The stock is currently trading at a heavy volume of 28 million shares, well above daily average volume of 3.20 million shares. Including today’s gain, SONO shares have jumped more than 37 percent on a year-to-date basis. 


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Published On
2020-11-19 11:47

avatar
About the Author
Staff or Guest writer for The Dog of Wall Street.



3 Stocks to Watch on the Way Down
These corrections provide investors with incredible opportunities to buy stocks at discounted prices.
By Mike Sakuraba | 2 days ago

2 Stocks that Ark Invest loves for 2021
Let’s take a look at two companies that Wood has her eye on and has recently added to Ark’s large portfolio of funds. 
By Mike Sakuraba | 1 week ago

2 Stocks to Buy After Earnings Dips
In an environment where rapid quarter-after-quarter growth is the new expectation, and any sort of regression can cause a well-inflated stock to deflate in a hurry, investors are often provided with a nice buying opportunity off of these market overreactions.
By Mike Sakuraba | 1 week ago

3 Under the Radar Crypto Plays
Let’s take a look at a couple companies that are right in the thick of the Bitcoin industry.
By Mike Sakuraba | 2 weeks ago

2 Valentine's Day Stocks to Love
Love is probably one industry that will never go out of style and will always be a part of the human experience.
By Mike Sakuraba | 2 weeks ago

2 Cannabis Stocks off to a Hot Start in February
Let’s take a look at a couple of cannabis stocks that are off to a hot start in February.
By Mike Sakuraba | 1 month ago