What happened 

Shares of iRobot Corporation (NASDAQ: IRBT) popped 15.3% in October, according to data provided by S&P Global Market Intelligence, after reporting earnings that showed more growth than investors expected. 

Robot Sitting On Books

Image source: Getty Images.

So what 

Third quarter revenue jumped 17.4% to $168.6 million and net income popped 52.5% to $19.5 million, or $0.70 per share. The earnings figure easily topped the $0.42 analysts expected and management said earnings for the full year will be $1.36 to $1.44 per share. 

Some of the short-term earnings beat was due to products being shipped in the third quarter that were expected to ship in the fourth quarter. But long-term the robotics company continues to see solid demand and that's a great sign for investors. 

Now what 

While the surging stock has been a boon for investors, it's also raised expectations for future growth. Shares now trade for 35 times the top end of earnings estimates, so investors need to keep an eye on future performance to make sure the company is hitting those expectations. An earnings beat is always welcome, but keep an eye on Roomba and Braava Jet sales going forward because investors may demand more growth than we're currently seeing to justify the share price long-term. 

Travis Hoium has no position in any stocks mentioned. The Motley Fool owns shares of and recommends iRobot. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.