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Why Is iRobot (IRBT) Up 5.7% Since the Last Earnings Report?
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It has been about a month since the last earnings report for iRobot Corporation (IRBT - Free Report) . Shares have added about 5.7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
The company’s quarterly adjusted earnings of $0.49 per share comfortably surpassed the Zacks Consensus Estimate of $0.39, but fell short of the year-ago tally of $0.65 per share.
Full-year 2016 earnings came in at $1.48 per share, a penny lower than the value recorded in the year-ago tally.
Revenues: During the quarter, revenues climbed 2.9% year over year to $212.5 million. The top line also exceeded the Zacks Consensus Estimate of $206 million.
Revenues for full-year 2016 were $660.6 million, as against $616.8 million recorded at the end of 2015.
Margins/Costs: iRobot’s gross margin for the quarter was 50.2%, up 400 basis points (bps) year over year.
The company’s fourth-quarter operating expenses were up 21.6% year over year to $87.9 million.
Adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the quarter came in at $28.6 million compared with $35 million in the prior-year quarter.
Revenues for full-year 2016 were $660.6 million, as against $616.8 million recorded at the end of 2015.
Full-year adjusted EBITDA was $94.4 million, up 2.6% year over year.
Segmental Information
On Apr 4, 2016, iRobot successfully completed the divestiture of its Defense & Security business to solely focus on its Consumer business.
In fourth-quarter 2016, the company’s Consumer business generated revenues worth $212.1 million, up 21.1% year over year. Notably, domestic sales during the quarter were roughly $124 million and international sales accounted for the remaining.
Total units shipped was 940,000, up from 771,000 shipped in fourth-quarter 2015.
Balance Sheet/Cash Flow: iRobot exited the quarter under review with cash and cash equivalents of $214.5 million, up from $170.5 million recorded in Jan 2, 2016. Long-term liabilities were $6.3 million compared with $7.7 million at the end of 2015.
At the end of 2016, iRobot generated net cash of $116.4 million from operating activities as against $26.7 million generated at the end of 2015. Capital expenditure was $10.8 million in Dec 31, 2016, compared to $9.4 million at the end of 2015.
Outlook: iRobot anticipates generating solid revenues in 2017 on the back of increased sales of the Roomba robot in the U.S., higher demand for all home robotic products in the overseas market and stunning market response to the new wet floor category products. In addition, higher revenues and greater operational efficacy are likely to bolster profitability in the upcoming quarters.
The company expects to complete the acquisition of its Japanese distributor (Sales On Demand Corporation) by the beginning of second-quarter 2017. This deal is likely to provide positive revenue impact of $20–$25 million in 2017.
Based on the existing market conditions, iRobot projects to generate revenues within the range of $770–$785 million (year-over-year growth of 17%–19%) and earnings within the $1.35–$1.65 million band in 2017.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
At this time, iRobot's stock has an average Growth Score of 'C', a grade with the same score on the momentum front. However, the stock was allocated a grade of 'F' on the value side, putting it in the bottom quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our styles scores, the stock is suitable for growth and momentum investors.
Outlook
The stock has a Zacks Rank #4 (Sell). We are looking for a below average return from the stock in the next few months.
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Why Is iRobot (IRBT) Up 5.7% Since the Last Earnings Report?
It has been about a month since the last earnings report for iRobot Corporation (IRBT - Free Report) . Shares have added about 5.7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Fourth-Quarter 2016 Results
iRobot Corporation (IRBT - Free Report) reported better-than-expected fourth-quarter 2016 results.
The company’s quarterly adjusted earnings of $0.49 per share comfortably surpassed the Zacks Consensus Estimate of $0.39, but fell short of the year-ago tally of $0.65 per share.
Full-year 2016 earnings came in at $1.48 per share, a penny lower than the value recorded in the year-ago tally.
Revenues: During the quarter, revenues climbed 2.9% year over year to $212.5 million. The top line also exceeded the Zacks Consensus Estimate of $206 million.
Revenues for full-year 2016 were $660.6 million, as against $616.8 million recorded at the end of 2015.
Margins/Costs: iRobot’s gross margin for the quarter was 50.2%, up 400 basis points (bps) year over year.
The company’s fourth-quarter operating expenses were up 21.6% year over year to $87.9 million.
Adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the quarter came in at $28.6 million compared with $35 million in the prior-year quarter.
Revenues for full-year 2016 were $660.6 million, as against $616.8 million recorded at the end of 2015.
Full-year adjusted EBITDA was $94.4 million, up 2.6% year over year.
Segmental Information
On Apr 4, 2016, iRobot successfully completed the divestiture of its Defense & Security business to solely focus on its Consumer business.
In fourth-quarter 2016, the company’s Consumer business generated revenues worth $212.1 million, up 21.1% year over year. Notably, domestic sales during the quarter were roughly $124 million and international sales accounted for the remaining.
Total units shipped was 940,000, up from 771,000 shipped in fourth-quarter 2015.
Balance Sheet/Cash Flow: iRobot exited the quarter under review with cash and cash equivalents of $214.5 million, up from $170.5 million recorded in Jan 2, 2016. Long-term liabilities were $6.3 million compared with $7.7 million at the end of 2015.
At the end of 2016, iRobot generated net cash of $116.4 million from operating activities as against $26.7 million generated at the end of 2015. Capital expenditure was $10.8 million in Dec 31, 2016, compared to $9.4 million at the end of 2015.
Outlook: iRobot anticipates generating solid revenues in 2017 on the back of increased sales of the Roomba robot in the U.S., higher demand for all home robotic products in the overseas market and stunning market response to the new wet floor category products. In addition, higher revenues and greater operational efficacy are likely to bolster profitability in the upcoming quarters.
The company expects to complete the acquisition of its Japanese distributor (Sales On Demand Corporation) by the beginning of second-quarter 2017. This deal is likely to provide positive revenue impact of $20–$25 million in 2017.
Based on the existing market conditions, iRobot projects to generate revenues within the range of $770–$785 million (year-over-year growth of 17%–19%) and earnings within the $1.35–$1.65 million band in 2017.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
iRobot Corporation Price and Consensus
iRobot Corporation Price and Consensus | iRobot Corporation Quote
VGM Scores
At this time, iRobot's stock has an average Growth Score of 'C', a grade with the same score on the momentum front. However, the stock was allocated a grade of 'F' on the value side, putting it in the bottom quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our styles scores, the stock is suitable for growth and momentum investors.
Outlook
The stock has a Zacks Rank #4 (Sell). We are looking for a below average return from the stock in the next few months.