By Stephen Nellis
(Reuters) -Connected speaker maker Sonos Inc on Wednesday raised its annual sales forecast above Wall Street expectations and posted second-quarter sales and profits that also beat expectations.
The Santa Barbara, California-based company forecast fiscal 2021 sales at a midpoint of $1.65 billion, above its prior forecast of $1.55 billion and above analyst expectations of $1.56 billion, according to IBES data from Refinitiv. For the company’s fiscal second quarter ended April 3, the company said sales were $332.9 million, up 90% from the prior year, and adjusted profits were 31 cents per share, versus a loss of 34 cents per share a year earlier.
Analysts had expected fiscal second-quarter sales of $248.41 million and an adjusted loss of 22 cents per share, according to Refinitiv data.
Sonos shares rose 14% to $35.81 in extended trading after the results.
In an interview with Reuters, Sonos Chief Executive Officer Patrick Spence said the company raised its annual forecast thanks to strong demand for products like its forthcoming Roam portable speaker.
He said the company, which has been shipping products for 16 years, has direct relationships with its chip suppliers and started ramping up its orders for semiconductors last year. Spence said Sonos believes it can work through a global chip supply shortage to meet the new forecast.
“We feel like we’re mitigating and got ahead of it as much as anyone could have,” Spence told Reuters. “We’ve shown (chipmakers) that this is real demand and we’re turning inventory around super quickly.”
(Reporting by Stephen Nellis in San Francisco; Editing by Leslie Adler and Lisa Shumaker)
