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iRobot (IRBT) Reports Q3 Net Loss, Revenues Down 7.4% Y/Y
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iRobot Corporation (IRBT - Free Report) reported third-quarter 2023 adjusted loss of $1.82 per share. The quarterly loss compares unfavorably with the year-ago quarter’s number.
Revenue Details
iRobot generated revenues of $186.2 million in the reported quarter, beating the Zacks Consensus Estimate of $259 million. On a year-over-year basis, revenues decreased 33.1% due to the low product availability of new products.
Sales derived from premium and mid-tier robots accounted for 81% of IRBT’s total robot revenues, higher than 76% in the year-ago quarter.
Sales generated from the e-commerce platform (representing 61% of the reported quarter’s revenues) decreased approximately 27% year over year. The e-commerce platform includes online sources of retailers, IRBT’s app and website, as well as e-commerce websites. Direct sales to consumers were down 8% year over year to $37 million.
Total product units of 627 thousand shipped in the quarter reflected a year-over-year decrease of 37.7%, while average selling prices increased 5.4%. For vacuum products, revenues of $172 million reflected a decline of 31.5% from the year-ago quarter. Units shipped were 585 thousand, down 36.8% from the prior-year quarter. Revenues from mopping products decreased 48.2% to $14 million. Units shipped were 42 thousand, down from 81 thousand recorded in the year-ago quarter.
On a regional basis, iRobot sourced 46.1% of revenues from domestic operations and the rest came from the international arena. Domestic revenues totaled $85.8 million, reflecting a 41.7% decline from the year-ago quarter. International revenues declined 31.7% to $100.4 million.
iRobot Corporation Price, Consensus and EPS Surprise
In the quarter under review, iRobot’s cost of revenues decreased 31.5% to $138.2 million. Adjusted gross profit was $54.9 million, down 33.8% year over year, while the adjusted gross margin decreased 170 basis points to 26.5%.
Research and development expenses were $37.2 million, down 10.1% year over year. Selling and marketing expenses decreased 30.7% to $41.7 million. General and administrative expenses were $28.4 million, down 10% year over year.
In the third quarter, iRobot recorded an adjusted operating loss of $40.6 million compared with the adjusted operating loss of $34.5 million in the year-ago period. The adjusted operating margin was (21.8%) versus (12.4%) in the year-ago quarter.
Balance Sheet and Cash Flow
While exiting third-quarter 2023, iRobot had cash and cash equivalents of $189.6 million compared with $117.9 million recorded at the end of fourth-quarter 2022. Total long-term liabilities were $253.2 million compared with $63.5 million recorded at the end of fourth-quarter 2022.
In the first nine months of 2023, iRobot used net cash of $113.6 million for operating activities compared with net cash of $21.6 million used in the prior-year period. Capital used for purchasing property and equipment totaled $3.1 million, decreasing 67.8%.
Zacks Rank & Stocks to Consider
IRBT currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the Industrial Products sector are discussed below:
In the past 60 days, estimates for Graco’s 2023 earnings have increased 1.3%. The stock has gained 12.7% in the past year.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank of 2 and a trailing four-quarter earnings surprise of 13.9%, on average.
AIT’s earnings estimates have increased 1.9% for fiscal 2024 (ending June 2024) in the past 60 days. Shares of Applied Industrial have risen 25.7% in the past year.
A. O. Smith Corporation (AOS - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of approximately 14%, on average.
In the past 60 days, estimates for A. O. Smith’s earnings have increased 4.5% for 2023. The stock has soared 26.3% in the past year.
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iRobot (IRBT) Reports Q3 Net Loss, Revenues Down 7.4% Y/Y
iRobot Corporation (IRBT - Free Report) reported third-quarter 2023 adjusted loss of $1.82 per share. The quarterly loss compares unfavorably with the year-ago quarter’s number.
Revenue Details
iRobot generated revenues of $186.2 million in the reported quarter, beating the Zacks Consensus Estimate of $259 million. On a year-over-year basis, revenues decreased 33.1% due to the low product availability of new products.
Sales derived from premium and mid-tier robots accounted for 81% of IRBT’s total robot revenues, higher than 76% in the year-ago quarter.
Sales generated from the e-commerce platform (representing 61% of the reported quarter’s revenues) decreased approximately 27% year over year. The e-commerce platform includes online sources of retailers, IRBT’s app and website, as well as e-commerce websites. Direct sales to consumers were down 8% year over year to $37 million.
Total product units of 627 thousand shipped in the quarter reflected a year-over-year decrease of 37.7%, while average selling prices increased 5.4%. For vacuum products, revenues of $172 million reflected a decline of 31.5% from the year-ago quarter. Units shipped were 585 thousand, down 36.8% from the prior-year quarter. Revenues from mopping products decreased 48.2% to $14 million. Units shipped were 42 thousand, down from 81 thousand recorded in the year-ago quarter.
On a regional basis, iRobot sourced 46.1% of revenues from domestic operations and the rest came from the international arena. Domestic revenues totaled $85.8 million, reflecting a 41.7% decline from the year-ago quarter. International revenues declined 31.7% to $100.4 million.
iRobot Corporation Price, Consensus and EPS Surprise
iRobot Corporation price-consensus-eps-surprise-chart | iRobot Corporation Quote
Margin Profile
In the quarter under review, iRobot’s cost of revenues decreased 31.5% to $138.2 million. Adjusted gross profit was $54.9 million, down 33.8% year over year, while the adjusted gross margin decreased 170 basis points to 26.5%.
Research and development expenses were $37.2 million, down 10.1% year over year. Selling and marketing expenses decreased 30.7% to $41.7 million. General and administrative expenses were $28.4 million, down 10% year over year.
In the third quarter, iRobot recorded an adjusted operating loss of $40.6 million compared with the adjusted operating loss of $34.5 million in the year-ago period. The adjusted operating margin was (21.8%) versus (12.4%) in the year-ago quarter.
Balance Sheet and Cash Flow
While exiting third-quarter 2023, iRobot had cash and cash equivalents of $189.6 million compared with $117.9 million recorded at the end of fourth-quarter 2022. Total long-term liabilities were $253.2 million compared with $63.5 million recorded at the end of fourth-quarter 2022.
In the first nine months of 2023, iRobot used net cash of $113.6 million for operating activities compared with net cash of $21.6 million used in the prior-year period. Capital used for purchasing property and equipment totaled $3.1 million, decreasing 67.8%.
Zacks Rank & Stocks to Consider
IRBT currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the Industrial Products sector are discussed below:
Graco Inc. (GGG - Free Report) presently carries a Zacks Rank #2 (Buy). GGG’s earnings surprise in the last four quarters was 7.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Graco’s 2023 earnings have increased 1.3%. The stock has gained 12.7% in the past year.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank of 2 and a trailing four-quarter earnings surprise of 13.9%, on average.
AIT’s earnings estimates have increased 1.9% for fiscal 2024 (ending June 2024) in the past 60 days. Shares of Applied Industrial have risen 25.7% in the past year.
A. O. Smith Corporation (AOS - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of approximately 14%, on average.
In the past 60 days, estimates for A. O. Smith’s earnings have increased 4.5% for 2023. The stock has soared 26.3% in the past year.