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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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.