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Adjusted earnings during the quarter came in at 54 cents per share, beating the Zacks Consensus Estimate of 26 cents. The bottom line also surpassed the year-ago tally of 49 cents per share.
Adjusted earnings for 2017 came in at $1.77 per share, missing the Zacks Consensus Estimate of $1.87. However, the figure came in higher than the year-ago tally of $1.51 per share.
Revenues
Quarterly revenues came in at $326.9 million, outpacing the Zacks Consensus Estimate of $317 million. The top line also came in 53.8% higher than the year-earlier tally. The upside stemmed from robust sales secured from the United States and Europe, the Middle East and Africa (EMEA).
The company generated $883.9 million revenues in 2017, higher than $660.6 million recorded in the year-ago period. The top line also surpassed the Zacks Consensus Estimate of $874.3 million.
iRobot Corporation Price, Consensus and EPS Surprise
Cost of sales in the reported quarter came in at $173.4 million, up 63.8% year over year. Gross profit margin in the quarter came in at 47%, contracting 320 basis points (bps) year over year.
Total operating expenses were $130.5 million, up 48.4% year over year. Operating margin came in at 7.1%, decreasing 170 basis points year over year.
Gross profit margin for 2017 was 49%, up 70 basis points year over year. Operating margin for 2017 was 8.2%, descending 50 bps year over year.
Balance Sheet/Cash Flow
Exiting the fourth quarter, this Zacks Rank #1 (Strong Buy) company had cash and cash equivalents of $128.6 million, up from $214.5 million recorded on Dec 31, 2016. Long-term liabilities were $23.5 million, significantly up from $6.3 million recorded at the end of 2016.
At the end of 2017, iRobot generated net cash of $76.3 million from operating activities as against $116.4 million generated in the year-earlier period. Capital expenditure was $23.4 million on Dec 30, 2017, compared to $10.8 million recorded at the end of fourth-quarter 2016.
Outlook
iRobot believes improving global economic conditions and upbeat consumer sentiments will drive demand for its premium home-robotic products in the quarters ahead. In addition, the company’s marketing programs and the Robopolis buyout (October 2017) will assist in boosting its top- and bottom-line growth trajectory.
Based on the existing market conditions, iRobot anticipates to generate revenues in the range of $1.05-$1.08 billion and earnings in the band of $2.10-$2.35 per share in 2018.
By 2020, iRobot intends to secure revenue growth of roughly 20%, gross margin growth of 50-51% and operating margin growth of nearly 10%.
Alarm.com Holdings, Inc. (ALRM - Free Report) flaunts a Zacks Rank #1. The company pulled of a positive average earnings surprise of 65.40% over the trailing four quarters.
Smith (A.O.) Corporation (AOS - Free Report) carries a Zacks Rank #2 (Buy). The company has pulled of a positive average earnings surprise of 3.85% during the same time frame.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
iRobot (IRBT) Beats on Q4 Earnings, Issues 2020 Guidance
Premium consumer technology company iRobot Corporation (IRBT - Free Report) reported strong fourth-quarter 2017 results.
Earnings/Revenues
Adjusted earnings during the quarter came in at 54 cents per share, beating the Zacks Consensus Estimate of 26 cents. The bottom line also surpassed the year-ago tally of 49 cents per share.
Adjusted earnings for 2017 came in at $1.77 per share, missing the Zacks Consensus Estimate of $1.87. However, the figure came in higher than the year-ago tally of $1.51 per share.
Revenues
Quarterly revenues came in at $326.9 million, outpacing the Zacks Consensus Estimate of $317 million. The top line also came in 53.8% higher than the year-earlier tally. The upside stemmed from robust sales secured from the United States and Europe, the Middle East and Africa (EMEA).
The company generated $883.9 million revenues in 2017, higher than $660.6 million recorded in the year-ago period. The top line also surpassed the Zacks Consensus Estimate of $874.3 million.
iRobot Corporation Price, Consensus and EPS Surprise
iRobot Corporation Price, Consensus and EPS Surprise | iRobot Corporation Quote
Costs/Margins
Cost of sales in the reported quarter came in at $173.4 million, up 63.8% year over year. Gross profit margin in the quarter came in at 47%, contracting 320 basis points (bps) year over year.
Total operating expenses were $130.5 million, up 48.4% year over year. Operating margin came in at 7.1%, decreasing 170 basis points year over year.
Gross profit margin for 2017 was 49%, up 70 basis points year over year. Operating margin for 2017 was 8.2%, descending 50 bps year over year.
Balance Sheet/Cash Flow
Exiting the fourth quarter, this Zacks Rank #1 (Strong Buy) company had cash and cash equivalents of $128.6 million, up from $214.5 million recorded on Dec 31, 2016. Long-term liabilities were $23.5 million, significantly up from $6.3 million recorded at the end of 2016.
At the end of 2017, iRobot generated net cash of $76.3 million from operating activities as against $116.4 million generated in the year-earlier period. Capital expenditure was $23.4 million on Dec 30, 2017, compared to $10.8 million recorded at the end of fourth-quarter 2016.
Outlook
iRobot believes improving global economic conditions and upbeat consumer sentiments will drive demand for its premium home-robotic products in the quarters ahead. In addition, the company’s marketing programs and the Robopolis buyout (October 2017) will assist in boosting its top- and bottom-line growth trajectory.
Based on the existing market conditions, iRobot anticipates to generate revenues in the range of $1.05-$1.08 billion and earnings in the band of $2.10-$2.35 per share in 2018.
By 2020, iRobot intends to secure revenue growth of roughly 20%, gross margin growth of 50-51% and operating margin growth of nearly 10%.
Other Stocks to Consider
Some other top-ranked stocks in the Zacks Categorized Industrial Products Sector are listed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) sports a Zacks Rank #1. The company has pulled of a positive average earnings surprise of 10.97% in the last four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alarm.com Holdings, Inc. (ALRM - Free Report) flaunts a Zacks Rank #1. The company pulled of a positive average earnings surprise of 65.40% over the trailing four quarters.
Smith (A.O.) Corporation (AOS - Free Report) carries a Zacks Rank #2 (Buy). The company has pulled of a positive average earnings surprise of 3.85% during the same time frame.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>