Shares of iRobot (IRBT 2.23%) were moving lower in after-hours trading on Tuesday, despite the robotics company delivering strong third-quarter earnings. For the period ended June 28, iRobot generated a profit of $0.28 per share, which was flat from a year ago. Nevertheless, it was enough to beat Wall Street estimates for earnings per share of just $0.22 in the quarter. This marks the fifth consecutive quarter that iRobot has delivered better-than-expected earnings results.
Source: The Motley Fool.
Revenue, on the other hand, fell short of expectations at $139 million in the period. Analysts' were looking for quarterly revenue of $142 million.
Investors seemed to dwell on iRobot's revenue miss instead of focusing on the strong growth in its home robots segment. The company noted a 15% year-over-year gain in home robot sales, which was driven by a 19% spike in international revenue and 7% domestic growth. As a result, iRobot raised the low end of its full-year guidance for home robots. The Massachusetts-based company now expects its home robotics business to generate full-year revenue of at least $505 million, up 1% from its prior guidance with a low end of $500 million.
Additionally, iRobot's defense and security business showed signs of a recovery. iRobot said it generated a $21 million defense and security backlog, which should fuel its growth in the second half of the year. Looking ahead, iRobot now expects third-quarter revenue between $133 million and $136 million. Unfortunately, it wasn't enough to stop shares of iRobot from selling off in after hours trading.
The stock was down more than 6% at around $36 a share as of 4:30 p.m.
