iRobot Scooches Higher on Strong Second-Quarter Outlook

Shares of iRobot scooch higher on surging demand for its robotic vacuums and mops as the coronavirus pandemic spurs consumers' need for clean.
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iRobot  (IRBT) - Get Report scooched higher on Monday after the company said “substantially” stronger-than-expected demand for Roomba robot vacuums and Braava robot mops will mean a boost to second-quarter sales and profits, as consumers focus on keeping it clean amid the coronavirus pandemic.

The Bedford, Mass.-based company said in a statement that it expects second-quarter sales of between $260 million and $270 million vs. prior expectations for second-quarter revenue to be down modestly from first-quarter 2020 revenue of $193 million.

The company anticipates that the “substantially higher-than-anticipated” second-quarter revenue, aided to a lesser extent by better-than-planned gross margin and diligent expense management, will result in a return to operating profitability for the quarter. The company previously was expecting a non-GAAP loss in the period.

"Our anticipated second-quarter 2020 financial performance will be substantially better than we originally expected," CEO Colin Angle said. "Maintaining a clean home has become a higher priority for many consumers as Covid-19 has forced people to spend more time in their homes.

“Our floor-cleaning robots have become true partners to millions of customers around the globe, enabling them to keep their homes tidy while freeing them to focus on other priorities, which may now include working from home, childcare and home schooling," he said.

Geographically, the company said year-to-date sales have been strong in the U.S., particularly over the past two months, while sales in Japan - one of its bigger target markets - are in the negative for 2020.

Shares of iRobot were up 6.17% at $79.84 in Monday trading. Since touching bottom of $33.91 on March 18, iRobot shares have surged more than 140%.