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Quarterly adjusted earnings came in at $1.12 per share, handily outpacing the Zacks Consensus Estimate of 44 cents. Also, the bottom line came in higher than the year-ago tally of 76 cents per share.
Revenues in the quarter came in at $264.5 million, beating the Zacks Consensus Estimate of $244 million. The top-line figure also improved 28.8% year over year, on the back of stronger sales secured from all end-markets.
iRobot Corporation Price, Consensus and EPS Surprise
Cost of sales in the reported quarter was $129.3 million, up 25.5% year over year. Gross margin was 51.1%, up 130 basis points (bps) year over year.
Total operating expenses in the reported quarter was $97.9 million, up 24.8% year over year. Operating margin was 14.1%, up 250 bps year over year.
Balance Sheet/Cash Flow
Exiting the third quarter, iRobot had cash and cash equivalents of $100.1 million, down from $128.6 million recorded as of Dec 30, 2017. Long-term liabilities came in at $14.7 million, down from $23.5 million reported at the end of 2017.
In the first nine months of 2018, iRobot generated $40.3 million cash from operating activities, down from $51.1 million recorded in the year-ago period. Capital expenditure was $25.3 million compared to $16.6 million witnessed at the end of third-quarter 2017.
Outlook
iRobot believes higher sales of its state-of-the-art home-robotic products and ongoing marketing programs will aid in boosting the company’s competency in the near future. Based on the existing market conditions, this Zacks Rank #3 (Hold) company raised its revenue guidance for 2018 from $1.06-$1.08 billion to $1.08-$1.09 billion (estimating a year-over-year growth rate of 22-23%). In addition to this, the company has also lifted its earnings view for the year from $2.30-$2.50 per share to $2.55-$2.75 per share.
Altra Industrial Motion Corp. sports a Zacks Rank #1 (Strong Buy). The company pulled off an average positive earnings surprise of 4.01% in the past four quarters. . You can see the complete list of today’s Zacks #1 Rank stocks here.
Atkore International Group Inc. (ATKR - Free Report) flaunts a Zacks Rank of 1. The company generated an average positive earnings surprise of 24.46% in the trailing four quarters.
Donaldson Company, Inc. (DCI - Free Report) also sports a Zacks Rank of 1. The company delivered an average positive earnings surprise of 2.29% in the preceding four quarters.
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.
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iRobot's (IRBT) Q3 Earnings Beat, 2018 EPS & Sales View Up
iRobot Corporation (IRBT - Free Report) reported better-than-expected results for third-quarter 2018.
Earnings/Revenues
Quarterly adjusted earnings came in at $1.12 per share, handily outpacing the Zacks Consensus Estimate of 44 cents. Also, the bottom line came in higher than the year-ago tally of 76 cents per share.
Revenues in the quarter came in at $264.5 million, beating the Zacks Consensus Estimate of $244 million. The top-line figure also improved 28.8% year over year, on the back of stronger sales secured from all end-markets.
iRobot Corporation Price, Consensus and EPS Surprise
iRobot Corporation Price, Consensus and EPS Surprise | iRobot Corporation Quote
Costs/Margins
Cost of sales in the reported quarter was $129.3 million, up 25.5% year over year. Gross margin was 51.1%, up 130 basis points (bps) year over year.
Total operating expenses in the reported quarter was $97.9 million, up 24.8% year over year. Operating margin was 14.1%, up 250 bps year over year.
Balance Sheet/Cash Flow
Exiting the third quarter, iRobot had cash and cash equivalents of $100.1 million, down from $128.6 million recorded as of Dec 30, 2017. Long-term liabilities came in at $14.7 million, down from $23.5 million reported at the end of 2017.
In the first nine months of 2018, iRobot generated $40.3 million cash from operating activities, down from $51.1 million recorded in the year-ago period. Capital expenditure was $25.3 million compared to $16.6 million witnessed at the end of third-quarter 2017.
Outlook
iRobot believes higher sales of its state-of-the-art home-robotic products and ongoing marketing programs will aid in boosting the company’s competency in the near future. Based on the existing market conditions, this Zacks Rank #3 (Hold) company raised its revenue guidance for 2018 from $1.06-$1.08 billion to $1.08-$1.09 billion (estimating a year-over-year growth rate of 22-23%). In addition to this, the company has also lifted its earnings view for the year from $2.30-$2.50 per share to $2.55-$2.75 per share.
Stocks to Consider
Some better-ranked stocks in the Zacks Industrial Products sector are listed below:
Altra Industrial Motion Corp. sports a Zacks Rank #1 (Strong Buy). The company pulled off an average positive earnings surprise of 4.01% in the past four quarters. . You can see the complete list of today’s Zacks #1 Rank stocks here.
Atkore International Group Inc. (ATKR - Free Report) flaunts a Zacks Rank of 1. The company generated an average positive earnings surprise of 24.46% in the trailing four quarters.
Donaldson Company, Inc. (DCI - Free Report) also sports a Zacks Rank of 1. The company delivered an average positive earnings surprise of 2.29% in the preceding four quarters.
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 >>