We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
iRobot's (IRBT) Q3 Earnings Beat, Down Y/Y, Guidance Revised
Read MoreHide Full Article
Premium consumer technology company iRobot Corporation (IRBT - Free Report) reported mixed results for third-quarter 2017. Though quarterly earnings surpassed the Zacks Consensus Estimate, revenues fell short of the same.
Earnings and Revenues
Quarterly adjusted earnings came in at 60 cents per share, comfortably beating the Zacks Consensus Estimate of 44 cents. However, the bottom line came in lower than the year-ago tally of 70 cents per share.
Quarterly revenues came in at nearly $205.4 million, missing the Zacks Consensus Estimate of $207 million. Nevertheless, the top line came in much ahead of the year-ago tally of $168.6 million.
Domestic Consumer business sales in the quarter came in at $87.6 million, up 33.8% year over year. Also, the International Consumer business generated revenues of $117.7 million in the reported quarter, up 14.9% year over year.
Total units shipped in the quarter came in at 906,000, up from 779,000 shipped in third-quarter 2016.
iRobot Corporation Price, Consensus and EPS Surprise
Cost of sales in the reported quarter was $103 million, up 17.7% year over year. Gross profit margin in the reported quarter came in at 49.8%, expanding 170 basis points (bps) year over year.
Total operating expenses were $78.5 million, up 46.4% year over year. Operating margin came in at 11.6% compared with 16.3% recorded in the year-ago period.
Balance Sheet and Cash Flow
Exiting the third quarter, this Zacks Rank #3 (Hold) company had cash and cash equivalents of $241.8 million, up from $214.5 million recorded on Dec 31, 2016. Long-term liabilities were $8 million, up from $6.3 million recorded at the end of 2016.
In the first nine months of 2017, iRobot generated net cash of $51.1 million from operating activities as against $67 million generated in the year-earlier period. Capital expenditure was $16.6 million on Sep 30, 2017, compared to $8.4 million recorded at the end of third-quarter 2016.
Outlook
iRobot believes business growth in the United States as well as the Europe, the Middle East and African end-markets would boost its results in the to-be-reported quarter. The company also anticipates that deeper market penetration of its premium home robotic products in the U.S. households will likely drive its top-line performance. Henceforth, the company raised its revenue guidance for full-year 2017 from $815-$825 million to $870-$880 million (estimating a year-over-year increment of 33-34%). Nonetheless, the company trimmed the lower-end of its earnings guidance for 2017, considering the impact of the latest Robopolis acquisition (Oct 2, 2017). Earnings guidance for the current year has been revised to the $1.65-$2.00 per share range from the $1.80-$2.00 per share range, previously estimated.
Stocks to Consider
Better-ranked stocks in the same space are listed below:
Allegion PLC (ALLE - Free Report) also holds a Zacks Rank of 2 and generated an average positive earnings surprise of 1.95% over the trailing four quarters.
A. O. Smith Corporation (AOS - Free Report) , another Zacks Rank #2 stock, pulled off an average positive earnings surprise of 3.25% during the same time frame.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them? Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy).
You can even look inside portfolios so exclusive that they are normally closed to new investors.
Image: Bigstock
iRobot's (IRBT) Q3 Earnings Beat, Down Y/Y, Guidance Revised
Premium consumer technology company iRobot Corporation (IRBT - Free Report) reported mixed results for third-quarter 2017. Though quarterly earnings surpassed the Zacks Consensus Estimate, revenues fell short of the same.
Earnings and Revenues
Quarterly adjusted earnings came in at 60 cents per share, comfortably beating the Zacks Consensus Estimate of 44 cents. However, the bottom line came in lower than the year-ago tally of 70 cents per share.
Quarterly revenues came in at nearly $205.4 million, missing the Zacks Consensus Estimate of $207 million. Nevertheless, the top line came in much ahead of the year-ago tally of $168.6 million.
Domestic Consumer business sales in the quarter came in at $87.6 million, up 33.8% year over year. Also, the International Consumer business generated revenues of $117.7 million in the reported quarter, up 14.9% year over year.
Total units shipped in the quarter came in at 906,000, up from 779,000 shipped in third-quarter 2016.
iRobot Corporation Price, Consensus and EPS Surprise
iRobot Corporation Price, Consensus and EPS Surprise | iRobot Corporation Quote
Costs and Margins
Cost of sales in the reported quarter was $103 million, up 17.7% year over year. Gross profit margin in the reported quarter came in at 49.8%, expanding 170 basis points (bps) year over year.
Total operating expenses were $78.5 million, up 46.4% year over year. Operating margin came in at 11.6% compared with 16.3% recorded in the year-ago period.
Balance Sheet and Cash Flow
Exiting the third quarter, this Zacks Rank #3 (Hold) company had cash and cash equivalents of $241.8 million, up from $214.5 million recorded on Dec 31, 2016. Long-term liabilities were $8 million, up from $6.3 million recorded at the end of 2016.
In the first nine months of 2017, iRobot generated net cash of $51.1 million from operating activities as against $67 million generated in the year-earlier period. Capital expenditure was $16.6 million on Sep 30, 2017, compared to $8.4 million recorded at the end of third-quarter 2016.
Outlook
iRobot believes business growth in the United States as well as the Europe, the Middle East and African end-markets would boost its results in the to-be-reported quarter. The company also anticipates that deeper market penetration of its premium home robotic products in the U.S. households will likely drive its top-line performance. Henceforth, the company raised its revenue guidance for full-year 2017 from $815-$825 million to $870-$880 million (estimating a year-over-year increment of 33-34%). Nonetheless, the company trimmed the lower-end of its earnings guidance for 2017, considering the impact of the latest Robopolis acquisition (Oct 2, 2017). Earnings guidance for the current year has been revised to the $1.65-$2.00 per share range from the $1.80-$2.00 per share range, previously estimated.
Stocks to Consider
Better-ranked stocks in the same space are listed below:
Altra Industrial Motion Corp. has an average positive earnings surprise of 17.30% for the last four quarters and currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Allegion PLC (ALLE - Free Report) also holds a Zacks Rank of 2 and generated an average positive earnings surprise of 1.95% over the trailing four quarters.
A. O. Smith Corporation (AOS - Free Report) , another Zacks Rank #2 stock, pulled off an average positive earnings surprise of 3.25% during the same time frame.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy).
You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>