iRobot Misses Where It Counts
iRobot (NAS: IRBT) reported earnings on April 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), iRobot beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Margins contracted across the board.
iRobot reported revenue of $97.8 million. The five analysts polled by S&P Capital IQ expected revenue of $96.4 million on the same basis. GAAP reported sales were 8.0% lower than the prior-year quarter's $106.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.03. The one earnings estimate compiled by S&P Capital IQ predicted $0.05 per share on the same basis. GAAP EPS of $0.02 for Q1 were 93% lower than the prior-year quarter's $0.27 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 34.8%, 610 basis points worse than the prior-year quarter. Operating margin was 0.7%, 980 basis points worse than the prior-year quarter. Net margin was 0.7%, 630 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $103.8 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $480.8 million. The average EPS estimate is $1.14.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,141 members out of 1,264 rating the stock outperform, and 123 members rating it underperform. Among 358 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 320 give iRobot a green thumbs-up, and 38 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 $31.20.
Over the decades, small-cap stocks like iRobot have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add iRobot to My Watchlist.
At the time this article 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.