Sonos celebrates its IPO on the Nasdaq, August 2, 2018.

Supply: Nasdaq

Shares of speaker maker Sonos rose as a lot as 23% in prolonged buying and selling on Wednesday after the corporate reported fiscal fourth-quarter earnings and fiscal-year income steerage that beat expectations.

Here is how the corporate did:

  • Earnings: 33 cents, excluding sure objects, vs. 0 cents as anticipated by analysts, in response to Refinitiv.
  • Income: $339.8 million, vs. $298.8 million as anticipated by analysts, in response to Refinitiv.

Within the fiscal fourth quarter, which ended on October 3, Sonos’ income grew 16%, though the quarter was 14 weeks lengthy, in response to a press release. Leaving out the 14th week, income grew 7%. Within the prior quarter income declined 4% as the corporate’s stock was not sufficient to satisfy demand.

For greater than half of the 2020 fiscal yr, individuals labored and attended college from house to cut back unfold of the coronavirus. That meant individuals had extra time to spend at house listening to music. Within the quarter, although, Sonos stated the virus had a adverse influence on product availability.

Within the 2020 fiscal yr Sonos elevated the variety of households by 20% yr over yr to 10.9 million, in contrast with 22% within the prior yr. Sonos CEO Patrick Spence stated in a press release that “current prospects add extra merchandise to their system — each new family that we achieve begins that cycle anew.”

Sonos additionally launched a number of new merchandise to assist maintain its portfolio recent, together with a high-end soundbar that works with TVs and a alternative to its strongest speaker.

The corporate continues to face stock constraints, Spence advised analysts on a convention name on Wednesday.

“We’re investing in issues like air freight and doing all the things we will to get as a lot provide into Q1 as we will,” he stated.

For the upcoming 2021 fiscal yr, Sonos initiatives $1.44 billion to $1.5 billion in income, implying 11% to fifteen% progress, forward of the $1.38 billion consensus amongst analysts polled by Refinitiv.

Excluding the after-hours transfer, Sonos shares are up 9% for the yr, in contrast with 14% for the S&P 500 index.

—CNBC’s Todd Haselton contributed to this report.

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