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Will iRobot (IRBT) Beat Q2 Earnings on Strong Robotic Sales?
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iRobot Corporation (IRBT - Free Report) is slated to report second-quarter 2018 results on Jul 24, after the market closes.
The company pulled off an impressive average positive earnings surprise of 96.01% over the preceding four quarters. Notably, iRobot’s adjusted earnings per share in first-quarter 2018 came in at 66 cents per share, beating the Zacks Consensus Estimate of 50 cents.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
iRobot believes solid demand for popular home-robotic products, such as Roomba 800, Roomba 900 and Braava jet, will bolster its revenues in the quarters ahead. Moreover, the company’s marketing programs and launch of innovative products are anticipated to be conducive to revenue growth. Also, iRobot expects that the Robopolis acquisition (October 2017) will boost its European revenues in the quarters ahead.
The company also expects that improved top-line performance, lower corporate tax and greater operational efficacy will enhance its profitability in the near term.
However, rising cost of sales remains a major cause of concern for the company. Escalating marketing and overhead expenses, and higher legal fee associated with International Trade Commission litigation might continue to augment the company’s aggregate costs, in turn hurt its profitability in the upcoming quarters.
We also fear that lingering headwinds in the consumer robotics market might dampen iRobot’s near-term prospects. For instance, excessive business rivalry in the U.S. robotic vacuum-cleaning market might hurt iRobot’s revenues in the upcoming quarters.
Earnings Whispers
Our proven model provides some idea on the stocks that are about to release their earnings results. Per the model, a stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or 2 (Buy) or at least 3 (Hold) for a likely earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
That is not the case here as we will see below.
Zacks ESP: iRobot has an Earnings ESP of -24.70%. This is because the Zacks Consensus Estimate of 17 cents is higher than the Most Accurate estimate of 13 cents per share.
Zacks Rank: iRobot’s favorable Zacks Rank of 3, when combined with a negative Earnings ESP, makes surprise predictions difficult.
It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the Zacks Industrial sector that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Graco Inc. (GGG - Free Report) , with an Earnings ESP of +4.00% and a Zacks Rank #1.
Eaton Corporation plc (ETN - Free Report) , with an Earnings ESP of +1.03% and a Zacks Rank #2.
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
Will iRobot (IRBT) Beat Q2 Earnings on Strong Robotic Sales?
iRobot Corporation (IRBT - Free Report) is slated to report second-quarter 2018 results on Jul 24, after the market closes.
The company pulled off an impressive average positive earnings surprise of 96.01% over the preceding four quarters. Notably, iRobot’s adjusted earnings per share in first-quarter 2018 came in at 66 cents per share, beating the Zacks Consensus Estimate of 50 cents.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
iRobot believes solid demand for popular home-robotic products, such as Roomba 800, Roomba 900 and Braava jet, will bolster its revenues in the quarters ahead. Moreover, the company’s marketing programs and launch of innovative products are anticipated to be conducive to revenue growth. Also, iRobot expects that the Robopolis acquisition (October 2017) will boost its European revenues in the quarters ahead.
The company also expects that improved top-line performance, lower corporate tax and greater operational efficacy will enhance its profitability in the near term.
However, rising cost of sales remains a major cause of concern for the company. Escalating marketing and overhead expenses, and higher legal fee associated with International Trade Commission litigation might continue to augment the company’s aggregate costs, in turn hurt its profitability in the upcoming quarters.
We also fear that lingering headwinds in the consumer robotics market might dampen iRobot’s near-term prospects. For instance, excessive business rivalry in the U.S. robotic vacuum-cleaning market might hurt iRobot’s revenues in the upcoming quarters.
Earnings Whispers
Our proven model provides some idea on the stocks that are about to release their earnings results. Per the model, a stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or 2 (Buy) or at least 3 (Hold) for a likely earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
That is not the case here as we will see below.
Zacks ESP: iRobot has an Earnings ESP of -24.70%. This is because the Zacks Consensus Estimate of 17 cents is higher than the Most Accurate estimate of 13 cents per share.
iRobot Corporation Price and EPS Surprise
iRobot Corporation Price and EPS Surprise | iRobot Corporation Quote
Zacks Rank: iRobot’s favorable Zacks Rank of 3, when combined with a negative Earnings ESP, makes surprise predictions difficult.
It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the Zacks Industrial sector that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Atkore International Group Inc. (ATKR - Free Report) , with an Earnings ESP of +1.49% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Graco Inc. (GGG - Free Report) , with an Earnings ESP of +4.00% and a Zacks Rank #1.
Eaton Corporation plc (ETN - Free Report) , with an Earnings ESP of +1.03% and a Zacks Rank #2.
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 >>