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iRobot (IRBT) Stock Soars 20% After Strong Amazon Prime Day Sales

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Shares of iRobot Corporation (IRBT - Free Report) rose 20% in morning trading on Wednesday after the tech company reported stronger-than-expected sales during Amazon (AMZN - Free Report) Prime Day earlier this month.

The Roomba maker said that on Amazon Prime Day this year, “We sold more than twice the volume on Prime day in 2016, which was twice what the volume sold in 2015. The Roomba 652 was ranked #1 in robotic vacuum cleaners, #1 in all floor care and #2 in all home & kitchen for 2017 Prime Day.”

As a result of this boost from Amazon, iRobot raised its guidance for 2017. The company now projects earnings for $1.80 to $2 per share, a raise from the previous forecast of $1.45 to $1.70.

iRobot also released better-than-expected second quarter earnings after the bell on Tuesday. The company said it had made a profit of $7.9 million, or 27 cents per share, on sales of $183.1 million, beating our Zacks Consensus Estimate of a loss of 25 cents per share. 

In additional news, the tech company announced an agreement to acquire its largest European distributor, Robopolis, for $141 million on Tuesday. This acquisition will allow iRobot’s presence to expand in countries such as Germany, Spain, France, Belgium, and the Netherlands.

IRBT remains a Zacks Rank #3 (Hold). With a Growth score of ‘A,’ our consensus estimates show that the company will have strong year-over-year earnings growth for the current year.

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