The maker of Roomba cleaning robots reported record fourth-quarter adjusted earnings of 84 cents per share, well above Zacks Consensus Estimate of 51 cents. This compares to 54 cents in the the same period the prior year.
Fourth-quarter revenue increased 17.7% vs. the comparable period, to $384.7 million, above the consensus estimate of $379 million -- a record high for the company.
"We had a phenomenal finish to 2018, exceeding both our fourth-quarter and full-year expectations for revenue growth and profitability after raising our expectations twice during the year," iRobot Chairman and CEO Colin Angle said in a press release.
Angle said the consumer robot company successfully navigated the impact of tariffs in the United States.
The company's full-year 2018 adjusted earnings grew a whopping 60.5% from the prior year, to $2.84 a share, with revenue rising 24% to $1.09 billion vs. $883.9 million recorded in 2017.
iRobot generated $71.7 million cash from operating activities in 2018, down from $76.3 million the prior year.
The company said the beat is owed to strong holiday demand in the U.S. and Japan.
"Substantial demand for our game-changing Roomba i7 and i7+ robots drove strong holiday performance domestically," said Angle. "Overseas, overperformance in Japan was driven by robust fourth-quarter demand supported by our sales and marketing programs in that region."
iRobot said it expects stronger demand to continue to drive up revenue in 2019 despite tariff uncertainties. The company expects revenue growth of 17% to 20%, between $1.28 billion and $1.31 billion, and EPS between $3 and 3.25 in 2019.
The company said it will diversify its products further in 2019, introducing a lawn-mowing line of robots and expanding into the smart-home space.
iRobot stock is up 23% year to date vs. the S&P 500's 8.2%.