The 10-second takeaway
For the quarter ended Dec. 29 (Q4), iRobot met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
iRobot logged revenue of $100.7 million. The five analysts polled by S&P Capital IQ expected to see sales of $100.9 million on the same basis. GAAP reported sales were 23% lower than the prior-year quarter's $130.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.13. The two earnings estimates compiled by S&P Capital IQ averaged -$0.23 per share. GAAP EPS were -$0.21 for Q4 versus $0.38 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.1%, 180 basis points worse than the prior-year quarter. Operating margin was -8.8%, 2,030 basis points worse than the prior-year quarter. Net margin was -5.9%, 1,400 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $103.2 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $477.7 million. The average EPS estimate is $0.87.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,183 members out of 1,301 rating the stock outperform, and 118 members rating it underperform. Among 361 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 332 give iRobot a green thumbs-up, and 29 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on iRobot is hold, with an average price target of $22.90.
Looking for alternatives to iRobot? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add iRobot to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool 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.