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Headquartered in Bedford, MA, iRobot Corporation (IRBT - Free Report) is a leading global consumer robot company. They also have offices in Europe and Asia.
Their product line includes the Roomba vacuuming robot and the Braava family of mopping robots. These robots help in domestic chores like vacuum cleaning, floor scrubbing, floor mopping, pool cleaning and gutter cleaning.
Company History
The company was founded in 1990 by MIT roboticists. For the past more than 25 years, it has been a global pioneer in the robotics and consumer products and has sold more than 20 million robots worldwide.
Excellent Results, Raised Guidance
The robot maker reported excellent results for Q2 2018, beating on both the top and bottom lines.
Adjusted earnings rose to 37 cents per share from 27 cents in the same quarter a year ago and beat the Zacks Consensus Estimate by a massive 117.6%.
The management raised the revenue guidance for 2018 to $1.06-$1.08 billion from the previous expectation of $1.05-$1.08 billion and they now expect earnings to be between $2.30-$2.50 per share, higher than earlier guidance of $2.15-$2.40 per share.
The stock surged almost 20% in the after-hours trading.
Rising Estimates
Analysts have been raising estimates for the company after better than expected results and guidance. Zacks Consensus Estimates for the current and next year have increased to $1.64 per share and $2.44 per share from $1.53 and $2.29, before the results.
The company has a pretty good record of beating estimates, as we can see from the following price and EPS surprise chart.
iRobot Corporation Price, Consensus and EPS Surprise
According to the company, robotic vacuum cleaner segment in the global vacuum cleaner market is about 23% now and the segment growth is expected to significantly outpace overall market growth.
iRobot Roomba continues to hold 60+% market share despite rising competition.
With continued focus on product quality, operational efficiencies and scale, they have been able to grow their revenues and margins consistently.
The company has an attractive expected EPS growth rate of 19.5% currently.
The Bottom Line
The company is a leader in robotic vacuum market globally. With rising awareness about these smart appliances and continuous innovations, they are able to maintain and grow their market share despite rising competition.
iRobot is also a rising player in the Internet of Things/Smart Home market. The sale of their connected devices is expected to rise significantly in the coming years.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Bull of the Day: iRobot Corporation (IRBT)
Headquartered in Bedford, MA, iRobot Corporation (IRBT - Free Report) is a leading global consumer robot company. They also have offices in Europe and Asia.
Their product line includes the Roomba vacuuming robot and the Braava family of mopping robots. These robots help in domestic chores like vacuum cleaning, floor scrubbing, floor mopping, pool cleaning and gutter cleaning.
Company History
The company was founded in 1990 by MIT roboticists. For the past more than 25 years, it has been a global pioneer in the robotics and consumer products and has sold more than 20 million robots worldwide.
Excellent Results, Raised Guidance
The robot maker reported excellent results for Q2 2018, beating on both the top and bottom lines.
Adjusted earnings rose to 37 cents per share from 27 cents in the same quarter a year ago and beat the Zacks Consensus Estimate by a massive 117.6%.
The management raised the revenue guidance for 2018 to $1.06-$1.08 billion from the previous expectation of $1.05-$1.08 billion and they now expect earnings to be between $2.30-$2.50 per share, higher than earlier guidance of $2.15-$2.40 per share.
The stock surged almost 20% in the after-hours trading.
Rising Estimates
Analysts have been raising estimates for the company after better than expected results and guidance. Zacks Consensus Estimates for the current and next year have increased to $1.64 per share and $2.44 per share from $1.53 and $2.29, before the results.
The company has a pretty good record of beating estimates, as we can see from the following price and EPS surprise chart.
iRobot Corporation Price, Consensus and EPS Surprise
iRobot Corporation Price, Consensus and EPS Surprise | iRobot Corporation Quote
Market Leadership in a Growing Industry
According to the company, robotic vacuum cleaner segment in the global vacuum cleaner market is about 23% now and the segment growth is expected to significantly outpace overall market growth.
iRobot Roomba continues to hold 60+% market share despite rising competition.
With continued focus on product quality, operational efficiencies and scale, they have been able to grow their revenues and margins consistently.
The company has an attractive expected EPS growth rate of 19.5% currently.
The Bottom Line
The company is a leader in robotic vacuum market globally. With rising awareness about these smart appliances and continuous innovations, they are able to maintain and grow their market share despite rising competition.
iRobot is also a rising player in the Internet of Things/Smart Home market. The sale of their connected devices is expected to rise significantly in the coming years.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>