The 10-second takeaway
For the quarter ended March 30 (Q1), iRobot beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Margins increased across the board.
iRobot booked revenue of $106.2 million. The five analysts polled by S&P Capital IQ predicted revenue of $103.9 million on the same basis. GAAP reported sales were 8.6% higher than the prior-year quarter's $97.8 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 $0.30. The two earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. Non-GAAP EPS of $0.30 for Q1 were much higher than the prior-year quarter's $0.03 per share. GAAP EPS of $0.29 for Q1 were much higher than the prior-year quarter's $0.02 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.8%, 440 basis points better than the prior-year quarter. Operating margin was 8.4%, 770 basis points better than the prior-year quarter. Net margin was 7.9%, 720 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $128.6 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $491.5 million. The average EPS estimate is $0.99.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,188 members out of 1,308 rating the stock outperform, and 120 members rating it underperform. Among 347 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 317 give iRobot a green thumbs-up, and 30 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 $23.90.
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