Please ensure Javascript is enabled for purposes of website accessibility

How Roomba Maker iRobot Beat Analyst Forecasts

By Rhian Hunt – Jul 22, 2020 at 8:29AM

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

Second-quarter sales saw strong growth in the U.S. and Japan.

Consumer robot manufacturer iRobot (IRBT 1.35%), maker of Roomba and Braava autonomous house-cleaning devices, vacuumed up plenty of profits during the second quarter, according to the earnings report it released yesterday. The quarter ended June 27 saw revenue jump 8% year over year, surpassing analyst consensus estimates by more than $14 million. The $279.9 million in revenue even beat the predictions of Chief Executive Officer Colin Angle, who anticipated between $260 million and $270 million in sales.

Earnings per share (EPS) under generally accepted accounting principles (GAAP) and adjusted EPS also exceeded analyst expectations by $0.80 and $0.77 per share, respectively. The growth represents a positive reversal from iRobot's first-quarter results, which saw a stunning plunge of 18.99% year over year during the height of the COVID-19 pandemic.

A Braava robot mop in action.

Image source: iRobot.

The company reported its premium robots provided an exceptionally bright spot, with 43% sales growth in this sector. Angle remarked "a clean home has taken on greater prominence during this pandemic," adding iRobot's more sophisticated robot mops and vacuums "possess the cleaning efficacy, thoughtful intelligence and home understanding to become trusted cleaning companions." He also highlighted the company's "strategy to differentiate our robots through their ability to deliver an exceptional cleaning experience as our product mix continued to shift toward our premium robots."

Japan and the U.S. were two of iRobot's best markets during the quarter, with revenue soaring 43% in Japan and 13% in America. Q2 also underscored the company's shift to digital sales channels, with approximately 70% of revenue generated through e-commerce, either on iRobot's own website or on those of other retailers.

Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends iRobot. The Motley Fool has a disclosure policy.

Premium Investing Services

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