IRobot Shares Off After Profit, Outlook Beat Estimates

IRobot earnings per share more than doubled from a year earlier and topped analyst estimates. The shares are lagging.
Author:
Publish date:

iRobot (IRBT) - Get Report shares dropped even as the maker of the Roomba and Braava robots topped analysts' third-quarter estimates and expectations for the year.

The Bedford, Mass., company earned $3.27 a share compared with $1.24 in the year-earlier period. The latest adjusted earnings were $2.58 a share. 

Third-quarter revenue of $413 million was a 43% year-over-year increase from $289.4 million.

Analysts surveyed by FactSet were expecting the company to report GAAP earnings of 55 cents a share, or an adjusted $1, on revenue of $313.5 million. 

"The pandemic continues to shine a light on how our robots can help individuals and families keep their floors clean while freeing them to spend their time doing the other things in their lives that they need or want to do," Chief Executive Colin Angle said in a statement.

The Roomba automatically vacuums floors while the Braava is a robotic mop.  

Angle said the revenue growth reflected stronger-than-expected orders from retailers, expected demand for the holiday season, and growth in direct-to-consumer sales. 

For the full year, the company expects earnings per share of $4.52 to $4.62, or an adjusted $3.43 to $3.53 a share, on revenue of $1.37 billion to $1.38 billion. 

The FactSet survey was looking for GAAP earnings of $2.74, or an adjusted $2.57, on revenue of $1.23 billion.

Angle credited the Q3 results, "sustained sell-through trends," the extension of a tariff exclusion until year-end, and a range of opportunities.

The U.S. Trade Representative extended the company's tariff exclusion for the Roomba until the end of 2020, iRobot said.

IRobot has no debt. It reported cash on hand of $357.3 million at the end of the quarter, up from $242.3 million at the end of the second quarter.

At last check iRobot shares were off 16% at $80.87. They've more than doubled off their 52-week low below $33, set in mid-March. They yesterday touched a 52-week high of $98.55.

Latest From TheStreet and Jim Cramer: