iRobot Misses on Revenue but Beats on EPS

Seth Jayson, The Motley Fool
Updated

iRobot (NAS: IRBT) reported earnings on Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), iRobot missed estimates on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved significantly.

Margins improved across the board.

Revenue details
iRobot recorded revenue of $130.8 million. The six analysts polled by S&P Capital IQ hoped for a top line of $134.0 million. GAAP sales were 15% higher than the prior-year quarter's $114.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.38. The two earnings estimates compiled by S&P Capital IQ averaged $0.31 per share. GAAP EPS of $0.38 for Q4 were 46% higher than the prior-year quarter's $0.26 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 42.9%, 300 basis points better than the prior-year quarter. Operating margin was 11.5%, 490 basis points better than the prior-year quarter. Net margin was 8.1%, 200 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $121.0 million. On the bottom line, the average EPS estimate is $0.28.

Next year's average estimate for revenue is $529.7 million. The average EPS estimate is $1.52.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,093 members out of 1,213 rating the stock outperform, and 120 members rating it underperform. Among 387 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 354 give iRobot a green thumbs-up, and 33 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on iRobot is outperform, with an average price target of $33.58.

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At the time thisarticle was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of 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.

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