Back to top

Image: Bigstock

iRobot (IRBT) to Report Q4 Earnings: What's in the Cards?

Read MoreHide Full Article

iRobot Corporation (IRBT - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 10, after market close.

The company delivered impressive earnings in the trailing four quarters, beating estimates on all occasions. The four-quarter earnings surprise was 164.86%, on average. Notably, in the last reported quarter, its earnings of $2.58 per share surpassed the Zacks Consensus Estimate of 91 cents by 183.52%.

In the past three months, shares of this industrial robot maker have surged 74.7% compared with the industry’s growth of 2.6%.

Key Factors to Influence Q4 Results

Solid demand for iRobot’s products, especially Braava and Roomba, along with healthy domestic and international businesses is likely to have driven revenues in fourth-quarter 2020. Also, the strengthening sell-through and the surge in the e-commerce business (from the company’s app and website as well as online retailers) are likely to have supported its top-line performance.

Also, iRobot’s efforts in building brand awareness are likely to have played a significant role in boosting demand for products in the quarter. In addition, the launch of innovative products might have been beneficial. Moreover, in the to-be-reported quarter, the holiday season and customer events might have strengthened the top-line performance.

Further, the company’s efforts to diversify its manufacturing capabilities (expansion in Malaysia and limiting exposure in China) might have worked favorably in the quarter.

However, the lingering effects of the pandemic, high operating costs and expenses, competitive threats, and investments in marketing and promotional actions might have adversely impacted its fourth-quarter performance.

The Zacks Consensus Estimate for iRobot’s revenues is pegged at $485 million for the fourth quarter of 2020. This suggests a 13.6% increase from the prior-year quarter’s reported figure and growth of 17.4% from the last reported quarter.

Earnings Whispers

According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here as we will see below.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: iRobot has an Earnings ESP of -13.92% as the Most Accurate Estimate is pegged at 17 cents, lower than the Zacks Consensus Estimate of 20 cents.

iRobot Corporation Price and EPS Surprise

iRobot Corporation Price and EPS Surprise

iRobot Corporation price-eps-surprise | iRobot Corporation Quote

Zacks Rank: It carries a Zacks Rank #3.

Key Picks

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Axon Enterprise, Inc (AXON - Free Report) has an Earnings ESP of +2.34% and a Zacks Rank #2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Chart Industries, Inc. (GTLS - Free Report) presently has a Zacks Rank #3 and an Earnings ESP of +0.49%.

The Middleby Corporation (MIDD - Free Report) currently has a Zacks Rank #2 and an Earnings ESP of +6.20%.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.

Click here for the 4 trades >>

Published in