Sonos shares jump as stay-at-home purchases help top expectations

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Sonos, the maker of speaker and other audio equipment, saw its direct-to-consumer sales rise as customers took time during the pandemic to add various products to their home.

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The company also announced that its Board of Directors has authorized a common stock repurchase program of up to $50 million.

“This new authorization underscores the fact we’ve hit an inflection point in our business and demonstrates our commitment to delivering long-term shareholder value," Psaid atrick Spence, Sonos CEO. "We are confident in the earnings power of our model and our belief in the significant value creation opportunities that lie ahead."

The direct-to-consumer business jumped 67%, helping to make up for weaknesses at retail partners.

Sonos reported fiscal fourth-quarter net income of $18.4 million, after reporting a loss in the same period a year earlier.

That sent shares soaring more than 20% in after-hours trading.

TickerSecurityLastChangeChange %SONOSONOS INC20.94-1.25-5.63%

On a per-share basis, the Santa Barbara, California-based company said it had net income of 15 cents.

The results surpassed Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 2 cents per share.

Soros posted revenue of $339.8 million in the period, also beating Street forecasts. Three analysts surveyed by Zacks expected $298.2 million.

For the year, the company reported that its loss widened to $20.1 million, or 18 cents per share. Revenue was reported as $1.33 billion.

Sonos expects full-year revenue in the range of $1.44 billion to $1.5 billion, which is above analyst expectations.

The Associated Press contributed to this report.

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