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iRobot's Q3 Earnings Surpass Estimates, Revenues Increase Y/Y

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iRobot Corporation (IRBT - Free Report) reported third-quarter 2024 adjusted loss of 3 cents per share, narrower than the Zacks Consensus Estimate of a loss of 5 cents per share. The reported figure compares favorably with the year-ago quarter’s net loss of $2.82 per share.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

IRBT’s Revenue Details

iRobot generated revenues of $193.4 million, which missed the Zacks Consensus Estimate of $218 million. On a year-over-year basis, revenues increased 3.9% due to an increase in sales of two-in-one products.

Sales derived from premium and mid-tier robots accounted for 79% of IRBT’s total robot revenues, lower than 80% in the year-ago quarter.

Total product units of 732 thousand were shipped, reflecting a year-over-year increase of 16.8%, while average selling prices declined 5.4%.

For solo and other products, revenues of $83 million reflected a decline of 34.1% year over year. Units shipped were 287 thousand, down 35.7% year over year.

Revenues from two-in-one products increased 83.3% year over year to $110 million. Units shipped were 445 thousand, up from 181 thousand in the year-ago quarter.

On a regional basis, iRobot sourced 54.4% of revenues from domestic operations, while the rest came from the international arena. Domestic revenues totaled $105.1 million, reflecting a 22.6% increase on a year-over-year basis. International revenues decreased 12.1% year over year to $88.3 million.

iRobot Corporation Price, Consensus and EPS Surprise

iRobot Corporation Price, Consensus and EPS Surprise

iRobot Corporation price-consensus-eps-surprise-chart | iRobot Corporation Quote

IRBT’s Margin Profile

The cost of revenues decreased 5.2% year over year to $131.1 million. Adjusted gross profit was $62.8 million, up 27% year over year, while the adjusted gross margin increased 590 basis points to 32.4%.

Research and development expenses were $19.6 million, down 47.4% year over year. Selling and marketing expenses declined 29.6% on a year-over-year basis to $29.3 million.

IRBT recorded an adjusted operating income of $15.1 million against $40.6 million loss in the year-ago period. The adjusted operating margin was 7.8 % against (21.8%) in the year-ago quarter.

IRBT’s Balance Sheet and Cash Flow

While exiting the third quarter, iRobot had cash and cash equivalents of $99.4 million compared with $185.1 million at the end of fourth-quarter 2023. Total long-term liabilities were $227.1 million compared with $250.1 million at fourth-quarter 2023-end.

In the first nine months of 2024, the company used net cash of $30.5 million from operating activities compared with $113.6 million in the prior-year period. Capital used for purchasing property and equipment declined 96.2% on a year-over-year basis to $118 million.

IRBT’s Outlook

For the fourth quarter, the company expects net sales to be in the range of $175–$200 million. 

The adjusted gross margin is estimated to be in the band of 24–27%. Management projects adjusted loss per share to be in the band of $1.2-$1.5 per share.

For 2024, management forecasts net sales to be in the range of $685–$710 million compared with $765-$800 million predicted earlier. 

The adjusted gross margin is envisioned to be in the band of 25-26%. Management projects adjusted loss per share to be in the band of $4.91–$4.60 compared with a loss of $3.31–$3.77 per share expected earlier.

IRBT’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Industrial Companies

Avery Dennison Corporation (AVY - Free Report) delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.

Total revenues grew 4.1% year over year to $2.18 billion and missed the Zacks Consensus Estimate of $2.2 billion.

John Bean Technologies Corporation reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the consensus estimate of $1.41.

Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.

A. O. Smith Corporation’s (AOS - Free Report) third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.

Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.


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