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iRobot Reports Q4 Adjusted Loss, Misses Revenue Estimates

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iRobot Corporation (IRBT - Free Report) reported fourth-quarter 2024 adjusted loss of $2.06 per share, wider than the Zacks Consensus Estimate of a loss of $1.45 per share. The reported figure compares favorably with the year-ago quarter’s net loss of $1.82 per share.

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IRBT’s Revenue Details

iRobot generated revenues of $172 million, which missed the Zacks Consensus Estimate of $191 million. On a year-over-year basis, revenues declined 44.1% due to decrease in sales of two-in-one products.

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.

Total product units of 701 thousand were shipped, reflecting a year-over-year decrease of 38.5%, while average selling prices declined 1.4%.

For solo and other products, revenues of $72 million reflected a decline of 61.1% year over year. Units shipped were 279 thousand, down 60.9% year over year.

Revenues from two-in-one products decreased 18.7% year over year to $100 million. Units shipped were 422 thousand, down from 425 thousand in the year-ago quarter.

On a regional basis, iRobot sourced 43.2% of revenues from domestic operations, while the rest came from the international arena. Domestic revenues totaled $74.3 million, reflecting a 46.9% decrease on a year-over-year basis. International revenues decreased 41.7% year over year to $97.7 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 37.5% year over year to $155.6 million. Gross profit was $16.4 million, down 71.8% year over year, while the gross margin decreased 940 basis points to 9.5%.

Research and development expenses were $16.5 million, down 39% year over year. Selling and marketing expenses declined 33.2% on a year-over-year basis to $39.9 million.

IRBT recorded an operating loss of $61 million compared with $52.2 million loss in the year-ago quarter. The adjusted operating margin was (26%) compared with (14.7%) in the year-ago quarter.

IRBT’s Balance Sheet and Cash Flow

While exiting the fourth quarter 2024, iRobot had cash and cash equivalents of $134.3 million compared with $185.1 million at the end of 2023. Total long-term liabilities were $236.6 million compared with $250.1 million at 2023-end.

In 2024, the company used net cash of $33.2 million from operating activities compared with $114.8 million in the prior-year period.

Stocks to Consider

IRBT currently carries a Zacks Rank #3 (Hold).

Some better-ranked companies from the same space are discussed below.

RBC Bearings Incorporated (RBC - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

RBC delivered a trailing four-quarter average earnings surprise of 4.9%. In the past 60 days, the Zacks Consensus Estimate for RBC’s fiscal 2025 earnings has increased 1.2%.

Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 5.3%. The Zacks Consensus Estimate for AIT’s fiscal 2025 (ending June 2025) earnings has improved 1.4% in the past 60 days.

The Middleby Corporation (MIDD - Free Report) presently carries a Zacks Rank of 2. MIDD delivered a trailing four-quarter average earnings surprise of 1.9%.
In the past 60 days, the consensus estimate for MIDD’s 2025 earnings has inched up 0.8%.

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