Shares of iRobot (NASDAQ: IRBT) were moving lower in after-hours trading on Tuesday, despite the robotics company delivering strong third-quarter earnings. For the period ended June 28, iRobot generated a profit of $0.28 per share, which was flat from a year ago. Nevertheless, it was enough to beat Wall Street estimates for earnings per share of just $0.22 in the quarter. This marks the fifth consecutive quarter that iRobot has delivered better-than-expected earnings results.
Revenue, on the other hand, fell short of expectations at $139 million in the period. Analysts' were looking for quarterly revenue of $142 million.
Investors seemed to dwell on iRobot's revenue miss instead of focusing on the strong growth in its home robots segment. The company noted a 15% year-over-year gain in home robot sales, which was driven by a 19% spike in international revenue and 7% domestic growth. As a result, iRobot raised the low end of its full-year guidance for home robots. The Massachusetts-based company now expects its home robotics business to generate full-year revenue of at least $505 million, up 1% from its prior guidance with a low end of $500 million.
Additionally, iRobot's defense and security business showed signs of a recovery. iRobot said it generated a $21 million defense and security backlog, which should fuel its growth in the second half of the year. Looking ahead, iRobot now expects third-quarter revenue between $133 million and $136 million. Unfortunately, it wasn't enough to stop shares of iRobot from selling off in after hours trading.
The stock was down more than 6% at around $36 a share as of 4:30 p.m.
Tamara Rutter owns shares of Apple and iRobot. The Motley Fool recommends Apple and iRobot. The Motley Fool owns shares of Apple. 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.