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iRobot (IRBT) Hikes Q2 Sales and Operating View, Stock Rises
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iRobot Corporation (IRBT - Free Report) yesterday provided an update on its second-quarter revenues and operating performance. Also, it highlighted its expectations for 2020.
The indication of a rise in the expectation for second-quarter revenues and operating performance has lifted sentiments for the stock, which is evident from a 9.6% increase in the company’s share price. The closing trade price for the stock was $82.39 yesterday.
Inside the Headlines
iRobot noted that the demand for its robot vacuums — the Roomba i7 Series and s9 Series — and robot mops — Braava jet m Series — has been going strong in the second quarter of 2020.
It believes that the top line in the second quarter will benefit from solid orders for Roomba and Braava products, and will likely be $260-$270 million. The top-line projection is way better than a modest sequential decline mentioned earlier. Notably, revenues in first-quarter 2020 were $193 million.
Geographically, the company anticipates sales in the United States to grow in mid-single digits on a year-over-year basis. Internationally, sales will likely exhibit a modest year-over-year decline, largely impacted by soft business in Europe. However, growth in Japan will likely provide relief.
In addition, iRobot now anticipates generating operating profits in the second quarter as compared to operating loss mentioned previously. The results will likely benefit from higher revenues, better management of gross margin and cost-saving moves.
For the second quarter of 2020, the Zacks Consensus Estimate for iRobot’s bottom line is pegged at 75 cents of loss per share, reflecting a decline from earnings of 3 cents per share mentioned 60 days ago. The consensus estimate for revenues is pegged at $184.7 million, suggesting a decline of 29% from the year-ago reported figure.
The company also noted that strengthening sell-through in the United States from the beginning of the year until May and positive sell-through in the EMEA region are healthy signs. Also, sell-through in Japan shows impressive growth in the past four weeks. Based on the tailwinds, the company reiterated its expectation of better performances in the second half of 2020 compared with the first half.
Further, it maintained that uncertainties related to the pandemic are still concerning and so continued to expect 2020 revenues to be lower than the 2019 level.
Zacks Rank, Earnings Estimates and Price Performance
iRobot, with a market capitalization of $2.1 billion, currently carries a Zacks Rank #3 (Hold). The company is poised to benefit from its solid product offerings, healthy customer demand and cost-saving actions. However, the pandemic scares remain concerning.
In the past three months, iRobot’s shares have surged 122.6% compared with the industry’s growth of 39.7%.
The Zacks Consensus Estimate for the company’s earnings is pegged at 30 cents for 2020 and $2.27 for 2021, reflecting declines of 57.1% and growth of 22% from the respective 60-day-ago figures.
In the past 30 days, earnings estimates for Silgan and II-VI have improved for the current year, while have been unchanged for Broadwind Energy. Further, earnings surprise for the last reported quarter was 16.33% for Silgan Holdings, 213.33% for II-VI and 200% for Broadwind Energy.
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iRobot (IRBT) Hikes Q2 Sales and Operating View, Stock Rises
iRobot Corporation (IRBT - Free Report) yesterday provided an update on its second-quarter revenues and operating performance. Also, it highlighted its expectations for 2020.
The indication of a rise in the expectation for second-quarter revenues and operating performance has lifted sentiments for the stock, which is evident from a 9.6% increase in the company’s share price. The closing trade price for the stock was $82.39 yesterday.
Inside the Headlines
iRobot noted that the demand for its robot vacuums — the Roomba i7 Series and s9 Series — and robot mops — Braava jet m Series — has been going strong in the second quarter of 2020.
It believes that the top line in the second quarter will benefit from solid orders for Roomba and Braava products, and will likely be $260-$270 million. The top-line projection is way better than a modest sequential decline mentioned earlier. Notably, revenues in first-quarter 2020 were $193 million.
Geographically, the company anticipates sales in the United States to grow in mid-single digits on a year-over-year basis. Internationally, sales will likely exhibit a modest year-over-year decline, largely impacted by soft business in Europe. However, growth in Japan will likely provide relief.
In addition, iRobot now anticipates generating operating profits in the second quarter as compared to operating loss mentioned previously. The results will likely benefit from higher revenues, better management of gross margin and cost-saving moves.
For the second quarter of 2020, the Zacks Consensus Estimate for iRobot’s bottom line is pegged at 75 cents of loss per share, reflecting a decline from earnings of 3 cents per share mentioned 60 days ago. The consensus estimate for revenues is pegged at $184.7 million, suggesting a decline of 29% from the year-ago reported figure.
The company also noted that strengthening sell-through in the United States from the beginning of the year until May and positive sell-through in the EMEA region are healthy signs. Also, sell-through in Japan shows impressive growth in the past four weeks. Based on the tailwinds, the company reiterated its expectation of better performances in the second half of 2020 compared with the first half.
Further, it maintained that uncertainties related to the pandemic are still concerning and so continued to expect 2020 revenues to be lower than the 2019 level.
Zacks Rank, Earnings Estimates and Price Performance
iRobot, with a market capitalization of $2.1 billion, currently carries a Zacks Rank #3 (Hold). The company is poised to benefit from its solid product offerings, healthy customer demand and cost-saving actions. However, the pandemic scares remain concerning.
In the past three months, iRobot’s shares have surged 122.6% compared with the industry’s growth of 39.7%.
The Zacks Consensus Estimate for the company’s earnings is pegged at 30 cents for 2020 and $2.27 for 2021, reflecting declines of 57.1% and growth of 22% from the respective 60-day-ago figures.
Stocks to Consider
Some better-ranked stocks in the Zacks Industrial Products sector are Silgan Holdings Inc. (SLGN - Free Report) , II-VI Incorporated and Broadwind Energy, Inc. (BWEN - Free Report) . While both Silgan and II-VI currently sport a Zacks Rank #1 (Strong Buy), Broadwind Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, earnings estimates for Silgan and II-VI have improved for the current year, while have been unchanged for Broadwind Energy. Further, earnings surprise for the last reported quarter was 16.33% for Silgan Holdings, 213.33% for II-VI and 200% for Broadwind Energy.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
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