iRobot Corporation (IRBT - Free Report) reported disappointing second-quarter 2022 results.
IRBT’s adjusted loss in the reported quarter was 65 cents per share, narrower than the Zacks Consensus Estimate of a loss of $1.87. However, the quarterly loss came against earnings of 4 cents per share recorded a year ago.
Revenue Details
iRobot generated revenues of $255 million in the reported quarter, lagging the Zacks Consensus Estimate of $305 million by 16.3%. On a year-over-year basis, revenues decreased 30.1% as the metric declined in the United States, Japan and the EMEA region from the prior-year quarter’s reading.
Sales derived from premium and mid-tier robots accounted for 83% of IRBT’s total robot revenues, higher than 82% in the year-ago quarter.
Sales generated from the e-commerce platform (representing 62% of the reported quarter’s revenues) decreased 35% year over year. The e-commerce platform includes online sources of retailers, IRBT’s app and website, and e-commerce websites. Direct sales to consumers were up 12% year over year to $40 million.
Total product units of 864 thousand shipped in the quarter reflected a year-over-year decrease of 34.2%, while average selling prices grew 1.8%. For vacuum products, revenues of $225 million reflected a decline of 30.3% from the year-ago quarter’s figure. Units shipped were 766 thousand, down 33.2% from the year-ago quarter’s level. Revenues from mopping products decreased 30.2% to $30 million. Units shipped were 99 thousand, down from 168 thousand recorded in the year-ago quarter.
On a regional basis, iRobot sourced 54.6% of revenues from domestic operations and the rest came from the international arena. Domestic revenues totaled $139.4 million, reflecting a 29.2% decline from the year-ago quarter’s level. International revenues declined 31.2% to $116 million.
Margin Profile
In the quarter under review, iRobot’s cost of revenues increased 23% to $174.4 million, representing 68.3% of revenues compared with 62% in the year-ago quarter. Non-GAAP gross profit was $82.9 million, down 40.6% year over year, while the adjusted gross margin decreased 570 basis points to 32.5%.
Research and development expenses were $41.9 million, up 8.3% year over year. This accounted for 16.4% of revenues compared with 10.6% in the year-ago quarter. Selling and marketing expenses increased 0.9% to $76 million. As a percentage of revenues, it was 29.8% for the reported quarter compared with 21% in the prior-year period. General and administrative expenses were $26.4 million, up 0.4% year over year. The figure mirrored 10.3% of the total revenue base compared with 7.2% in the year-earlier quarter.
In the second quarter, iRobot recorded an adjusted operating loss of $63.9 million compared with the operating loss of $3 million in the year-ago period. Adjusted operating margin was (25%) versus (0.8%) in the year-ago quarter.
Balance Sheet and Cash Flow
While exiting second-quarter 2022, iRobot had cash and cash equivalents of $63.4 million, decreasing 68.5% from $201.5 million recorded at the end of fourth-quarter 2021. Total long-term liabilities were $61.1 million, down 15% from the figure recorded at the end of fourth-quarter 2021.
In the first six months of 2022, iRobot used net cash of $186.5 million for operating activities against net cash of $1.8 million generated in the previous-year’s period. Capital used for purchasing property and equipment totaled $4.9 million, decreasing 77.6%.
Zacks Rank & Stocks to Consider
IRBT currently has a Zacks Rank #3 (Hold). Some better-ranked companies from the industrial products sector are discussed below:
Greif, Inc. (GEF - Free Report) presently sports a Zacks Rank #1. GEF delivered a trailing four-quarter earnings surprise of 22.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
GEF’s earnings estimates have increased 8.2% for fiscal 2022 (ending October 2022) in the past 60 days. Its shares have risen 25.2% in the past six months.
Titan International, Inc. presently flaunts a Zacks Rank of 1. Its earnings surprise in the last four quarters was 47%, on average.
In the past 60 days, TWI’s earnings estimates have increased 39.5% for 2022. The stock has surged 37.4% in the past six months.
Valmont Industries, Inc. (VMI - Free Report) presently has a Zacks Rank #2 (Buy). VMI’s earnings surprise in the last four quarters was 13.7%, on average.
In the past 60 days, Valmont’s earnings estimates have increased 3.8% for 2022. The stock has rallied 26.1% in the past six months.
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If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
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iRobot Corporation (IRBT - Free Report) reported disappointing second-quarter 2022 results.
IRBT’s adjusted loss in the reported quarter was 65 cents per share, narrower than the Zacks Consensus Estimate of a loss of $1.87. However, the quarterly loss came against earnings of 4 cents per share recorded a year ago.
Revenue Details
iRobot generated revenues of $255 million in the reported quarter, lagging the Zacks Consensus Estimate of $305 million by 16.3%. On a year-over-year basis, revenues decreased 30.1% as the metric declined in the United States, Japan and the EMEA region from the prior-year quarter’s reading.
Sales derived from premium and mid-tier robots accounted for 83% of IRBT’s total robot revenues, higher than 82% in the year-ago quarter.
Sales generated from the e-commerce platform (representing 62% of the reported quarter’s revenues) decreased 35% year over year. The e-commerce platform includes online sources of retailers, IRBT’s app and website, and e-commerce websites. Direct sales to consumers were up 12% year over year to $40 million.
Total product units of 864 thousand shipped in the quarter reflected a year-over-year decrease of 34.2%, while average selling prices grew 1.8%. For vacuum products, revenues of $225 million reflected a decline of 30.3% from the year-ago quarter’s figure. Units shipped were 766 thousand, down 33.2% from the year-ago quarter’s level. Revenues from mopping products decreased 30.2% to $30 million. Units shipped were 99 thousand, down from 168 thousand recorded in the year-ago quarter.
On a regional basis, iRobot sourced 54.6% of revenues from domestic operations and the rest came from the international arena. Domestic revenues totaled $139.4 million, reflecting a 29.2% decline from the year-ago quarter’s level. International revenues declined 31.2% to $116 million.
Margin Profile
In the quarter under review, iRobot’s cost of revenues increased 23% to $174.4 million, representing 68.3% of revenues compared with 62% in the year-ago quarter. Non-GAAP gross profit was $82.9 million, down 40.6% year over year, while the adjusted gross margin decreased 570 basis points to 32.5%.
Research and development expenses were $41.9 million, up 8.3% year over year. This accounted for 16.4% of revenues compared with 10.6% in the year-ago quarter. Selling and marketing expenses increased 0.9% to $76 million. As a percentage of revenues, it was 29.8% for the reported quarter compared with 21% in the prior-year period. General and administrative expenses were $26.4 million, up 0.4% year over year. The figure mirrored 10.3% of the total revenue base compared with 7.2% in the year-earlier quarter.
In the second quarter, iRobot recorded an adjusted operating loss of $63.9 million compared with the operating loss of $3 million in the year-ago period. Adjusted operating margin was (25%) versus (0.8%) in the year-ago quarter.
Balance Sheet and Cash Flow
While exiting second-quarter 2022, iRobot had cash and cash equivalents of $63.4 million, decreasing 68.5% from $201.5 million recorded at the end of fourth-quarter 2021. Total long-term liabilities were $61.1 million, down 15% from the figure recorded at the end of fourth-quarter 2021.
In the first six months of 2022, iRobot used net cash of $186.5 million for operating activities against net cash of $1.8 million generated in the previous-year’s period. Capital used for purchasing property and equipment totaled $4.9 million, decreasing 77.6%.
Zacks Rank & Stocks to Consider
IRBT currently has a Zacks Rank #3 (Hold). Some better-ranked companies from the industrial products sector are discussed below:
Greif, Inc. (GEF - Free Report) presently sports a Zacks Rank #1. GEF delivered a trailing four-quarter earnings surprise of 22.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
GEF’s earnings estimates have increased 8.2% for fiscal 2022 (ending October 2022) in the past 60 days. Its shares have risen 25.2% in the past six months.
Titan International, Inc. presently flaunts a Zacks Rank of 1. Its earnings surprise in the last four quarters was 47%, on average.
In the past 60 days, TWI’s earnings estimates have increased 39.5% for 2022. The stock has surged 37.4% in the past six months.
Valmont Industries, Inc. (VMI - Free Report) presently has a Zacks Rank #2 (Buy). VMI’s earnings surprise in the last four quarters was 13.7%, on average.
In the past 60 days, Valmont’s earnings estimates have increased 3.8% for 2022. The stock has rallied 26.1% in the past six months.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
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