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iRobot (IRBT) Q4 Earnings: What's in Store for the Stock?
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iRobot Corporation (IRBT - Free Report) is scheduled to report its fourth-quarter and full-year 2016 figures after the opening bell on Feb 8, 2017.
Over the last one month, iRobot’s shares recorded a return of 8.75%- outperforming 7.38% return provided by the Zacks categorized Industrial Automation/Robotics industry.
Let’s see how things are shaping up prior to this announcement.
Existing Scenario
iRobot believes that the robust momentum of its U.S. business and strategic marketing programs would fuel top- and bottom-line growth in the quarter-to-be-reported. Notably, rise in demand of the premium home robotics products would likely boost the company’s aggregate sales in the quarter under review. For instance, increased consumer adoption of the company’s robot – Roomba – is expected to supplement the company’s Asian market sales in the quarter.
Notably, iRobot is poised to grow on the back of meaningful innovations, strategic marketing programs and diligent restructuring initiatives.
However, certain headwinds, such as fall in customers’ brand loyalty, emergence of an unfavorable political outcome in the market or sluggish global economic growth might be serious setbacks.
Based on the existing market conditions, iRobot projects earnings in the range of 36 to 44 cents per share and revenues in $202-$207 million band for the fourth-quarter.
Earnings Whispers
Our proven model does not conclusively show that iRobot is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as we will see below.
Zacks ESP: iRobot currently has a positive Earnings ESP of 2.56%. This is because, the Zacks Consensus Estimate of 39 cents, stands below the Most Accurate estimate of 40 cents per share.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: iRobot has a favorable Earnings ESP but its Zacks Rank #5 (Strong Sell) makes surprise prediction difficult.
Note that we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Some other well ranked stocks within the industry are listed below:
Cintas Corp. (CTAS - Free Report) , with an Earnings ESP of +0.94% and a Zacks Rank #2.
HD Supply Holdings, Inc. , with an Earnings ESP of +20.45% and a Zacks Rank #2.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
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iRobot (IRBT) Q4 Earnings: What's in Store for the Stock?
iRobot Corporation (IRBT - Free Report) is scheduled to report its fourth-quarter and full-year 2016 figures after the opening bell on Feb 8, 2017.
Over the last one month, iRobot’s shares recorded a return of 8.75%- outperforming 7.38% return provided by the Zacks categorized Industrial Automation/Robotics industry.
Let’s see how things are shaping up prior to this announcement.
Existing Scenario
iRobot believes that the robust momentum of its U.S. business and strategic marketing programs would fuel top- and bottom-line growth in the quarter-to-be-reported. Notably, rise in demand of the premium home robotics products would likely boost the company’s aggregate sales in the quarter under review. For instance, increased consumer adoption of the company’s robot – Roomba – is expected to supplement the company’s Asian market sales in the quarter.
Notably, iRobot is poised to grow on the back of meaningful innovations, strategic marketing programs and diligent restructuring initiatives.
However, certain headwinds, such as fall in customers’ brand loyalty, emergence of an unfavorable political outcome in the market or sluggish global economic growth might be serious setbacks.
Based on the existing market conditions, iRobot projects earnings in the range of 36 to 44 cents per share and revenues in $202-$207 million band for the fourth-quarter.
Earnings Whispers
Our proven model does not conclusively show that iRobot is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as we will see below.
Zacks ESP: iRobot currently has a positive Earnings ESP of 2.56%. This is because, the Zacks Consensus Estimate of 39 cents, stands below the Most Accurate estimate of 40 cents per share.
iRobot Corporation Price and EPS Surprise
iRobot Corporation Price and EPS Surprise | iRobot Corporation Quote
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: iRobot has a favorable Earnings ESP but its Zacks Rank #5 (Strong Sell) makes surprise prediction difficult.
Note that we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Some other well ranked stocks within the industry are listed below:
Fairmount Santrol Holdings Inc. , with an Earnings ESP of +11.11% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cintas Corp. (CTAS - Free Report) , with an Earnings ESP of +0.94% and a Zacks Rank #2.
HD Supply Holdings, Inc. , with an Earnings ESP of +20.45% and a Zacks Rank #2.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>