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Sonos will increase after sturdy gross sales forecast for the fiscal yr

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Sonos will celebrate its IPO on the Nasdaq on August 2, 2018.

Source: Nasdaq

Speaker maker Sonos stocks rose up to 23% in expanded trading on Wednesday after the company reported fourth quarter results and fiscal year revenue projections that exceeded expectations.

This is how the company did it:

Merits: 33 cents, excluding specific items, versus 0 cents as analysts expected, according to Refinitiv.Revenue: According to Refinitiv, $ 339.8 million versus $ 298.8 million as analysts expected.

In the fourth fiscal quarter, which ended October 3, Sonos' revenue rose 16%, despite a 14-week quarter, according to a statement. Excluding week 14, sales increased 7%. Revenue declined 4% in the previous quarter as the company ran out of inventory to meet demand.

For more than half of fiscal 2020, people worked and attended school from home to try to reduce the spread of the coronavirus. That meant people had more time at home to listen to music. However, in the quarter, Sonos had a negative impact on product availability.

In the 2020 financial year, Sonos increased the number of households by 20% year-on-year to 10.9 million compared to 22% in the previous year. Patrick Spence, CEO of Sonos, said in a statement: "Existing customers are adding more products to their system – every new household we win starts this cycle again."

Sonos has also launched several new products to keep its portfolio up to date, including a high-end soundbar that works with televisions and a replacement for the most powerful speaker.

The company continues to face inventory restrictions, Spence told analysts on Wednesday in a conference call.

"We're investing in things like air freight and we're doing everything we can to get as much supplies as possible into the first quarter," he said.

For the upcoming 2021 fiscal year, Sonos predicts revenue of $ 1.44 to $ 1.5 billion, up 11 to 15 percent, ahead of the consensus of $ 1.38 billion among analysts surveyed by Refinitiv.

Excluding the post-business move, Sonos stocks are up 9% over the year, compared to 14% in the S&P 500 index.

– CNBC's Todd Haselton contributed to this report.

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Katherine Clark