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iRobot's Business Initiatives Impress, Forex Risks a Drag
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We issued an updated research report on premium appliances company iRobot Corporation (IRBT - Free Report) on May 30, 2016. The company designs and sells mechanized robots worldwide for defensive, household and security-related purposes.
Scopes for Growth
iRobot expects growth in earnings and revenues in the upcoming quarters on the back of its robust Home Robotic’s business and the success of the Defense & Security segment divestiture. The company anticipates 12–13% Home Robotic revenue growth in 2016. Better distribution of the Roomba 980 robot, improved wet floor core trade and extensive business diversification in China are expected to drive the upside. Moreover, the company expects its aggregate revenues to increase significantly in 2017 and 2018 driven by new business investments. In addition, the company would be using advertisements to promote product awareness across global markets. The appliance manufacturer intends to improve the sale of its existing as well as new products in the near future through innovative market penetration and development strategies.
Ongoing Issues
iRobot earns the major portion of its revenues from its Home Robotic business. However, the success of this business depends upon the company’s ability to penetrate the consumer home-care market. Inability to introduce Home Robotics products or deliver the same at the proper time might considerably hurt the company’s top line.
Moreover, iRobot expands its business through internationalization which exposes it to several headwinds. For instance, a strong U.S. dollar has been eroding value of the company's international revenues and margins to some extent in recent times. Also, intense competition exposes the company to risks of market share loss. Furthermore, failure to maintain business competency can weigh on the company’s sales in the near future.
Other Stocks to Consider
iRobot presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include AMC Networks Inc. (AMCX - Free Report) , Capella Education Co. and Carter's, Inc. (CRI - Free Report) . All three companies currently hold a Zacks Rank #2 (Buy).
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iRobot's Business Initiatives Impress, Forex Risks a Drag
We issued an updated research report on premium appliances company iRobot Corporation (IRBT - Free Report) on May 30, 2016. The company designs and sells mechanized robots worldwide for defensive, household and security-related purposes.
Scopes for Growth
iRobot expects growth in earnings and revenues in the upcoming quarters on the back of its robust Home Robotic’s business and the success of the Defense & Security segment divestiture. The company anticipates 12–13% Home Robotic revenue growth in 2016. Better distribution of the Roomba 980 robot, improved wet floor core trade and extensive business diversification in China are expected to drive the upside. Moreover, the company expects its aggregate revenues to increase significantly in 2017 and 2018 driven by new business investments. In addition, the company would be using advertisements to promote product awareness across global markets. The appliance manufacturer intends to improve the sale of its existing as well as new products in the near future through innovative market penetration and development strategies.
Ongoing Issues
iRobot earns the major portion of its revenues from its Home Robotic business. However, the success of this business depends upon the company’s ability to penetrate the consumer home-care market. Inability to introduce Home Robotics products or deliver the same at the proper time might considerably hurt the company’s top line.
Moreover, iRobot expands its business through internationalization which exposes it to several headwinds. For instance, a strong U.S. dollar has been eroding value of the company's international revenues and margins to some extent in recent times. Also, intense competition exposes the company to risks of market share loss. Furthermore, failure to maintain business competency can weigh on the company’s sales in the near future.
Other Stocks to Consider
iRobot presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include AMC Networks Inc. (AMCX - Free Report) , Capella Education Co. and Carter's, Inc. (CRI - Free Report) . All three companies currently hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>