How Roomba Maker iRobot Beat Analyst Forecasts

7/23/20

By Rhian Hunt, Motley Fool

Consumer robot manufacturer iRobot (NASDAQ:IRBT), maker of Roomba and Braava autonomous house-cleaning devices, vacuumed up plenty of profits during the second quarter, according to the earnings report it released yesterday. The quarter ended June 27 saw revenue jump 8% year over year, surpassing analyst consensus estimates by more than $14 million. The $279.9 million in revenue even beat the predictions of Chief Executive Officer Colin Angle, who anticipated between $260 million and $270 million in sales.

Earnings per share (EPS) under generally accepted accounting principles (GAAP) and adjusted EPS also exceeded analyst expectations by $0.80 and $0.77 per share, respectively. The growth represents a positive reversal from iRobot's first-quarter results, which saw a stunning plunge of 18.99% year over year during the height of the COVID-19 pandemic.

A Braava robot mop in action.

IMAGE SOURCE: IROBOT.

The company reported its premium robots provided an exceptionally bright spot, with 43% sales growth in this sector. Angle remarked "a clean home has taken on greater prominence during this pandemic," adding iRobot's more sophisticated robot mops and vacuums "possess the cleaning efficacy, thoughtful intelligence and home understanding to become trusted cleaning companions." He also highlighted the company's "strategy to differentiate our robots through their ability to deliver an exceptional cleaning experience as our product mix continued to shift toward our premium robots."

Japan and the U.S. were two of iRobot's best markets during the quarter, with revenue soaring 43% in Japan and 13% in America. Q2 also underscored the company's shift to digital sales channels, with approximately 70% of revenue generated through e-commerce, either on iRobot's own website or on those of other retailers.

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