Home audio specialist Sonos (NASDAQ:SONO) reported impressive second-quarter results on Wednesday evening, sending the stock as much as 16% higher in after-hours trading.
The stock cooled down a bit after the initial surge of investor enthusiasm, notching a maximum jump of 12.1% on Thursday morning. By 1 p.m. EDT, Sonos had retreated to a 3.4% gain.
Second-quarter sales increased 90% year over year to $333 million, driven by fantastic demand for the company's home entertainment products. On the bottom line, Sonos swung from an adjusted net loss of $0.34 per share to adjusted earnings of $0.31 per share. Your average analyst would have settled for a net loss of $0.22 per share on revenue near $248 million.
"The power of our model is that customers can start with one product and expand to more over time, and our customers continue to prove they do just that," CEO Patrick Spence said in a prepared statement.
Looking ahead, Sonos' management boosted the midpoint of its full-year revenue guidance from $1.55 billion to $1.65 billion. Here, the Street consensus had pointed to $1.56 billion.
This great report gave Sonos shares a welcome break after a tumble of nearly 30% over the last 30 days. The stock should get back to exploring all-time highs again as investors get comfortable that the skyrocketing share price is supported by equally impressive business results. And the positive story isn't over as Sonos hopes to widen its 7% market share in the global market for premium home audio products.