Please ensure Javascript is enabled for purposes of website accessibility

Why iRobot Corporation Stock Popped Today

By Steve Symington - Apr 26, 2017 at 12:04PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The home robot innovator just delivered a solid quarterly beat and raise.

What happened

Shares of iRobot Corporation (IRBT -1.19%) were up 14.7% as of 11:30 a.m. EDT Wednesday after the home robotics specialist announced strong first-quarter 2017 results.

So what

Quarterly revenue climbed 28.8% year over year, to $168.5 million, and would have climbed 31.8% had it not been for $3 million in revenue from the since-divested Defense & Security (D&S) business. On the bottom line, that translated to net income of $16.4 million, or $0.58 per share, up from $3.9 million, or $0.13 per share in the same year-ago period -- though the D&S divestiture reduced last year's Q1 earnings by $0.12 per share. In any case, iRobot easily outpaced investors' expectations for earnings of $0.27 per share on revenue of $154.6 million.

iRobot's Roomba 980 turning a corner

iRobot's Roomba 980. Image source: iRobot.

"Our first quarter results were outstanding," added iRobot chairman and CEO Colin Angle. "Building off the strong momentum we experienced during the year-end holidays, iRobot delivered first quarter 2017 consumer revenue growth of 32% due to growth across all regions."

Now what

Looking forward, iRobot now expects full-year 2017 revenue of $780 million to $790 million (up from previous guidance for $770 million to $785 million), which should result in earnings per share of $1.45 to $1.70 (up from EPS guidance for $1.35 to $1.65 previously).

In the end, this is a straightforward beat and raise from iRobot, and investors have every reason to celebrate its results today.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

iRobot Stock Quote
iRobot
IRBT
$39.13 (-1.19%) $0.47

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
323%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.