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The company’s adjusted loss for the reported quarter was $1.05 per share compared with the Zacks Consensus Estimate of a loss of 88 cents. Also, the quarterly loss compares unfavorably with earnings of 84 cents per share generated in the year-ago quarter.
For 2021, IRBT’s adjusted earnings were $1.34 per share, decreasing 67.6% from the previous year’s $4.14. Also, the bottom line lagged the Zacks Consensus estimate of $1.47 per share.
Revenue Details
The company generated revenues of $455.5 million for the reported quarter, lagging the Zacks Consensus Estimate of $462.3 million by 1.5%. On a year-over-year basis, quarterly revenues decreased 16.4% as shipping delays and shortages of semiconductor chips adversely impacted its performance.
Sales derived from premium and mid-tier robots accounted for 81% of the company’s total robot revenues, higher than 78% in the year-ago quarter.
Sales generated from the e-commerce platform (representing 53% of the reported quarter’s revenues) decreased 26% 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 down 1% year over year to $68 million and represented 14.9% of the quarter’s revenues.
Total product units of 1,657 thousand shipped in the quarter reflected a year-over-year decrease of 24.4%, while average selling prices grew 7.6%. For vacuum products, revenues of $408 million reflected a decline of 15.7% from the year-ago quarter. Units shipped were 1,480 thousand, down 24.2% from the year-ago quarter. Revenues from mopping products decreased 23% from the prior-year quarter to $47 million. Units shipped were 177 thousand, down from 241 thousand recorded in the fourth quarter of 2020.
On a geographical basis, the company sourced 49.6% of revenues from domestic operations and the rest came from the international arena. Domestic revenues totaled $226 million, reflecting a 28.5% decrease from the year-ago quarter. International revenues grew 0.4% from the year-ago quarter to $229.4 million. International operations gained from a 19% revenue increase in Japan, partially offset by a 2% decline in EMEA sales.
For 2021, IRBT’s revenues were $1.57 billion, up 9.4% year over year and in line with the Zacks Consensus Estimate. Connected customers for the year totaled 14 million, reflecting an increase of 44% year over year.
Margin Profile
For the quarter under review, iRobot’s non-GAAP cost of revenues increased 1.1% to $328.9 million, representing 72.2% of revenues compared with 59.7% in the year-ago quarter. Non-GAAP gross profit was $126.6 million, down 42.3% year over year, while the adjusted gross margin decreased 1250 basis points to 27.8%.
Research and development expenses were $40.5 million, down 9.5% year over year. This accounted for 8.9% of revenues compared with 8.2% in the year-ago quarter. Selling and marketing expenses decreased 20.3% year over year to $103.1 million. As a percentage of revenues, it was 22.6% for the reported quarter compared with 23.7% in the prior-year period. General and administrative expenses were $26.6 million, up 2.9% year over year. The figure mirrored 5.8% of the total revenue base compared with 4.7% in the year-earlier quarter.
For the quarter under review, the company recorded an adjusted operating loss of $33.6 million against operating earnings of $30.4 million in the year-ago period. Adjusted operating margin was (7.4%) versus 5.6% in the year-ago quarter.
Tariff costs related to Section 301 totaled $19.1 million for the reported quarter. Its impact on the gross and operating margins was (4.2%).
Balance Sheet and Cash Flow
Exiting fourth-quarter 2021, iRobot had cash and cash equivalents of $201.5 million, decreasing 7.6% from $218 million recorded at the end of third-quarter 2021. Total long-term liabilities were $72 million, up 6.4% sequentially.
In 2021, the company used net cash of $32 million for operating activities against a net cash flow of $232 million in the previous year. Capital used for purchasing property and equipment totaled $29.9 million, decreasing 5.3% year over year.
In 2021, IRBT repurchased shares worth $150 million.
Outlook
For 2022, the company anticipates benefiting from solid product offerings and customer base, innovation capabilities, expansion plans as well as operational initiatives. Supply-chain issues are predicted to adversely impact IRBT’s performance for the first half of the year.
It predicts revenues within $1.75-$1.85 billion, suggesting year-over-year growth of 12-18%. IRBT anticipates non-GAAP earnings to be $1.50-$2.00 per share.
Non-GAAP gross profit is expected to be $622-$3681 million and non-GAAP operating income is predicted to be $44-$60 million. The impact of tariff-related costs of Section 301 is expected to be $42-$44 million.
For the first quarter, the company predicts revenues to be $293-$313 million, suggesting a decline of 3% to growth of 3% from the year-ago period. Operating loss is predicted to be $37-$44 million, while net loss per share is expected to be $1.35-$1.60.
iRobot Corporation Price, Consensus and EPS Surprise
With a market capitalization of $1.9 billion, iRobot currently carries a Zacks Rank #5 (Strong Sell).
Three companies from the Zacks Industrial Products sector set to report quarterly results soon are discussed below:
Ingersoll Rand Inc. (IR - Free Report) is scheduled to release fourth-quarter results on Feb 23, after market close. It presently carries a Zacks Rank #4 (Sell).
The company reported better-than-expected results in the last four quarters, with the earnings surprise being 19.78%, on average. The Zacks Consensus Estimate for Ingersoll’s fourth-quarter earnings has been unchanged in the past 60 days.
Colfax Corporation is slated to release fourth-quarter results on Feb 22, before market open. It presently carries a Zacks Rank #4.
In the last four quarters, the company surpassed earnings estimates thrice and matched the same once, with a surprise of 5.64%, on average. The Zacks Consensus Estimate for CFX’s fourth-quarter earnings has been unchanged in the past 60 days.
Barnes Group Inc. (B - Free Report) presently carries a Zacks Rank #4. The company is slated to report fourth-quarter 2021 results on Feb 18, before market open.
The company reported better-than-expected results in the last four quarters, with the earnings surprise being 10.99%, on average. The Zacks Consensus Estimate for B’s fourth-quarter earnings has decreased 6.1% in the past 60 days.
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iRobot (IRBT) Records Q4 Loss, Supply Woes Persist in Q1
iRobot Corporation (IRBT - Free Report) reported weaker-than-expected results for fourth-quarter 2021.
The company’s adjusted loss for the reported quarter was $1.05 per share compared with the Zacks Consensus Estimate of a loss of 88 cents. Also, the quarterly loss compares unfavorably with earnings of 84 cents per share generated in the year-ago quarter.
For 2021, IRBT’s adjusted earnings were $1.34 per share, decreasing 67.6% from the previous year’s $4.14. Also, the bottom line lagged the Zacks Consensus estimate of $1.47 per share.
Revenue Details
The company generated revenues of $455.5 million for the reported quarter, lagging the Zacks Consensus Estimate of $462.3 million by 1.5%. On a year-over-year basis, quarterly revenues decreased 16.4% as shipping delays and shortages of semiconductor chips adversely impacted its performance.
Sales derived from premium and mid-tier robots accounted for 81% of the company’s total robot revenues, higher than 78% in the year-ago quarter.
Sales generated from the e-commerce platform (representing 53% of the reported quarter’s revenues) decreased 26% 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 down 1% year over year to $68 million and represented 14.9% of the quarter’s revenues.
Total product units of 1,657 thousand shipped in the quarter reflected a year-over-year decrease of 24.4%, while average selling prices grew 7.6%. For vacuum products, revenues of $408 million reflected a decline of 15.7% from the year-ago quarter. Units shipped were 1,480 thousand, down 24.2% from the year-ago quarter. Revenues from mopping products decreased 23% from the prior-year quarter to $47 million. Units shipped were 177 thousand, down from 241 thousand recorded in the fourth quarter of 2020.
On a geographical basis, the company sourced 49.6% of revenues from domestic operations and the rest came from the international arena. Domestic revenues totaled $226 million, reflecting a 28.5% decrease from the year-ago quarter. International revenues grew 0.4% from the year-ago quarter to $229.4 million. International operations gained from a 19% revenue increase in Japan, partially offset by a 2% decline in EMEA sales.
For 2021, IRBT’s revenues were $1.57 billion, up 9.4% year over year and in line with the Zacks Consensus Estimate. Connected customers for the year totaled 14 million, reflecting an increase of 44% year over year.
Margin Profile
For the quarter under review, iRobot’s non-GAAP cost of revenues increased 1.1% to $328.9 million, representing 72.2% of revenues compared with 59.7% in the year-ago quarter. Non-GAAP gross profit was $126.6 million, down 42.3% year over year, while the adjusted gross margin decreased 1250 basis points to 27.8%.
Research and development expenses were $40.5 million, down 9.5% year over year. This accounted for 8.9% of revenues compared with 8.2% in the year-ago quarter. Selling and marketing expenses decreased 20.3% year over year to $103.1 million. As a percentage of revenues, it was 22.6% for the reported quarter compared with 23.7% in the prior-year period. General and administrative expenses were $26.6 million, up 2.9% year over year. The figure mirrored 5.8% of the total revenue base compared with 4.7% in the year-earlier quarter.
For the quarter under review, the company recorded an adjusted operating loss of $33.6 million against operating earnings of $30.4 million in the year-ago period. Adjusted operating margin was (7.4%) versus 5.6% in the year-ago quarter.
Tariff costs related to Section 301 totaled $19.1 million for the reported quarter. Its impact on the gross and operating margins was (4.2%).
Balance Sheet and Cash Flow
Exiting fourth-quarter 2021, iRobot had cash and cash equivalents of $201.5 million, decreasing 7.6% from $218 million recorded at the end of third-quarter 2021. Total long-term liabilities were $72 million, up 6.4% sequentially.
In 2021, the company used net cash of $32 million for operating activities against a net cash flow of $232 million in the previous year. Capital used for purchasing property and equipment totaled $29.9 million, decreasing 5.3% year over year.
In 2021, IRBT repurchased shares worth $150 million.
Outlook
For 2022, the company anticipates benefiting from solid product offerings and customer base, innovation capabilities, expansion plans as well as operational initiatives. Supply-chain issues are predicted to adversely impact IRBT’s performance for the first half of the year.
It predicts revenues within $1.75-$1.85 billion, suggesting year-over-year growth of 12-18%. IRBT anticipates non-GAAP earnings to be $1.50-$2.00 per share.
Non-GAAP gross profit is expected to be $622-$3681 million and non-GAAP operating income is predicted to be $44-$60 million. The impact of tariff-related costs of Section 301 is expected to be $42-$44 million.
For the first quarter, the company predicts revenues to be $293-$313 million, suggesting a decline of 3% to growth of 3% from the year-ago period. Operating loss is predicted to be $37-$44 million, while net loss per share is expected to be $1.35-$1.60.
iRobot Corporation Price, Consensus and EPS Surprise
iRobot Corporation price-consensus-eps-surprise-chart | iRobot Corporation Quote
Zacks Rank & Other Important Earnings Releases
With a market capitalization of $1.9 billion, iRobot currently carries a Zacks Rank #5 (Strong Sell).
Three companies from the Zacks Industrial Products sector set to report quarterly results soon are discussed below:
Ingersoll Rand Inc. (IR - Free Report) is scheduled to release fourth-quarter results on Feb 23, after market close. It presently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company reported better-than-expected results in the last four quarters, with the earnings surprise being 19.78%, on average. The Zacks Consensus Estimate for Ingersoll’s fourth-quarter earnings has been unchanged in the past 60 days.
Colfax Corporation is slated to release fourth-quarter results on Feb 22, before market open. It presently carries a Zacks Rank #4.
In the last four quarters, the company surpassed earnings estimates thrice and matched the same once, with a surprise of 5.64%, on average. The Zacks Consensus Estimate for CFX’s fourth-quarter earnings has been unchanged in the past 60 days.
Barnes Group Inc. (B - Free Report) presently carries a Zacks Rank #4. The company is slated to report fourth-quarter 2021 results on Feb 18, before market open.
The company reported better-than-expected results in the last four quarters, with the earnings surprise being 10.99%, on average. The Zacks Consensus Estimate for B’s fourth-quarter earnings has decreased 6.1% in the past 60 days.