iRobot (IRBT 89.00, +17.81, +25.02%) jumped up 17% premarket and saw continued
strength throughout the morning after the company reported better than expected
second quarter results and raised guidance slightly for the year.
iRobot created the home robot cleaning category with the introduction of its Roomba Vacuuming Robot in 2002. Today, iRobot is a global enterprise that has sold more than 20 mln robots worldwide. Roomba remains the iRobot’s best-known brand, but beyond vacuums, the company also offers automatic mopping robots and pool cleaning robots in its Braava and Mirra product lines.
Second quarter revenue grew 24% to $226 mln, 3% above estimates, driven by growth across all major regions. EMEA and Japan saw significant year/year growth of 51% and 31%, respectively. EMEA growth was driven in part by the revenue uplift from the company’s acquisition of its largest European distributor, Robopolis, which was closed at the beginning of 4Q17.
Shipments to support Q2 holidays in the U.S., including robust Mother’s Day and Father’s Day sales, drove domestic revenue growth of 15% over last year.
Roomba was selected as a featured product for U.S. Amazon Prime Day for the fourth straight year. The company's robots sold out, doubling the Prime Day sales volume, as they have each year since the event began in 2015, a testament to their enduring popularity amidst sector competitors. The Roomba 671 ranked as the #1 product in the robotic vacuum cleaners and floor care categories for the sales event. Roomba was also featured on Prime Day in EMEA and Japan this year for the first time, and strong results recorded in those regions helped the company to strengthen its global brand.
Sales from the July event postdate the second quarter and so are not material to second quarter results, but the company sees the spree as a useful gauge for expectations for the latter half of the year.
The company raised fiscal 2018 EPS to $2.30-2.50 from $2.15-2.40 and raised sales guidance to $1.06-1.08 bln from $1.05-1.08 bln.
The stock saw a dramatic move in extended trade because roughly 40% of the rather small 27 mln share stock is sold short.
iRobot investors have been on a wild ride as skeptics bet against the stock in the face of increasing competition.
With a $2.3 bln valuation, iRobot trades a ~35x EPS estimates and ~2x sales.
Management provided additional commentary on the quarter and on full-year growth outlooks in a conference call held this morning at 8:30.
- OUR VIEW
- LEARNING CENTER