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iRobot (IRBT) to Report Q3 Earnings: What's in the Cards?
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iRobot Corporation (IRBT - Free Report) is slated to report third-quarter 2018 results on Oct 23, after the market closes.
The company pulled off an impressive average positive earnings surprise of 73.43% over the preceding four quarters. Notably, iRobot’s second-quarter 2018 adjusted earnings of 37 cents per share remarkably outpaced the Zacks Consensus Estimate of 17 cents.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Rising cost of sales remains major cause of concern for iRobot. Escalating marketing and overhead expenses, as well as higher legal fee associated with International Trade Commission litigation, might continue to increase the company’s aggregate costs. This, in turn, might hurt iRobot’s 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 the company’s revenues in the quarters ahead.
Over the past month, iRobot’s shares lost 14.6%, wider than 12.5% loss recorded by the industry.
The global industrial robotics market is facing headwinds arising from the lately imposed trade tariffs for robotic vacuums (on September 2018).
However, iRobot perceives that increased demand for its state-of-the-art home robotic products — including Roomba 800, Roomba 900 and Braava jet — is likely to continue driving top-line growth in the quarters ahead. Notably, the Robopolis acquisition (on October 2017) will likely continue augmenting iRobot’s European revenues. Moreover, iRobot believes that efforts undertaken to launch products in the past two quarters, as well as ongoing market programs, will aid its revenues in the third quarter.
Growth in top-line numbers, greater operational efficacy, diligent cost-cutting initiatives and reduced corporate tax rates are anticipated to be accretive to iRobot’s near-term profitability.
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), 2 (Buy) or 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.
Esrnings ESP: iRobot has an Earnings ESP of -1.83%. This is because the Zacks Consensus Estimate of 44 cents per share, is a penny higher than the Most Accurate Estimate for the stock.
Zacks Rank: iRobot’s Zacks Rank #4 (Sell), when combined with a negative Earnings ESP, makes surprise predictions inconclusive.
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 stocks in the Zacks Industrial Products sector that you may want to consider, as our model shows that these have the right combination of elements to come up with an earnings beat:
Eaton Corporation, PLC (ETN - Free Report) has a Zacks Rank #2 and an Earnings ESP of +0.08%.
Flowserve Corporation (FLS - Free Report) has a Zacks Rank #2 and an Earnings ESP of +1.72%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
iRobot (IRBT) to Report Q3 Earnings: What's in the Cards?
iRobot Corporation (IRBT - Free Report) is slated to report third-quarter 2018 results on Oct 23, after the market closes.
The company pulled off an impressive average positive earnings surprise of 73.43% over the preceding four quarters. Notably, iRobot’s second-quarter 2018 adjusted earnings of 37 cents per share remarkably outpaced the Zacks Consensus Estimate of 17 cents.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Rising cost of sales remains major cause of concern for iRobot. Escalating marketing and overhead expenses, as well as higher legal fee associated with International Trade Commission litigation, might continue to increase the company’s aggregate costs. This, in turn, might hurt iRobot’s 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 the company’s revenues in the quarters ahead.
Over the past month, iRobot’s shares lost 14.6%, wider than 12.5% loss recorded by the industry.
The global industrial robotics market is facing headwinds arising from the lately imposed trade tariffs for robotic vacuums (on September 2018).
However, iRobot perceives that increased demand for its state-of-the-art home robotic products — including Roomba 800, Roomba 900 and Braava jet — is likely to continue driving top-line growth in the quarters ahead. Notably, the Robopolis acquisition (on October 2017) will likely continue augmenting iRobot’s European revenues. Moreover, iRobot believes that efforts undertaken to launch products in the past two quarters, as well as ongoing market programs, will aid its revenues in the third quarter.
Growth in top-line numbers, greater operational efficacy, diligent cost-cutting initiatives and reduced corporate tax rates are anticipated to be accretive to iRobot’s near-term profitability.
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), 2 (Buy) or 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.
Esrnings ESP: iRobot has an Earnings ESP of -1.83%. This is because the Zacks Consensus Estimate of 44 cents per share, is a penny higher than the Most Accurate Estimate for the stock.
iRobot Corporation Price and EPS Surprise
iRobot Corporation Price and EPS Surprise | iRobot Corporation Quote
Zacks Rank: iRobot’s Zacks Rank #4 (Sell), when combined with a negative Earnings ESP, makes surprise predictions inconclusive.
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 stocks in the Zacks Industrial Products sector that you may want to consider, as our model shows that these have the right combination of elements to come up with an earnings beat:
AptarGroup, Inc. (ATR - Free Report) has a Zacks Rank #2 and an Earnings ESP of +1.61%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Eaton Corporation, PLC (ETN - Free Report) has a Zacks Rank #2 and an Earnings ESP of +0.08%.
Flowserve Corporation (FLS - Free Report) has a Zacks Rank #2 and an Earnings ESP of +1.72%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>