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iRobot (IRBT) Incurs Narrower-Than-Expected Net Loss in Q1
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iRobot Corporation (IRBT - Free Report) reported first-quarter 2024 adjusted loss of $1.53 per share, narrower than the Zacks Consensus Estimate of a loss of $2.03. The reported figure compares favorably with the year-ago quarter’s net loss of $1.67.
Revenue Details
iRobot generated revenues of $150 million in the reported quarter, beating the Zacks Consensus Estimate of $139 million. On a year-over-year basis, revenues decreased 6.4% due to lower sales across all product categories.
Sales derived from premium and mid-tier robots accounted for 81% of IRBT’s total robot revenues, lower than 88% in the year-ago quarter.
Total product units of 456 thousand were shipped in the quarter under review, reflecting a year-over-year increase of 4.6%, while average selling prices decreased 13.9%.
For solo and other products, revenues of $94 million reflected a decline of 30.4% year over year. Units shipped were 267 thousand, down 28.4% year over year.
Revenues from 2-in-1 products increased 124% year over year to $56 million. Units shipped were 189 thousand, up from 63 thousand recorded in the year-ago quarter.
On a regional basis, iRobot sourced 45.9% of revenues from domestic operations and the rest came from the international arena. Domestic revenues totaled $68.9 million, reflecting a 4.3% fall on a year-over-year basis. International revenues decreased 8.2% year over year to $81.1 million.
iRobot Corporation Price, Consensus and EPS Surprise
Cost of revenues decreased 7.8% year over year to $113.9 million. Adjusted gross profit was $36.9 million, down 2.6% year over year, while the adjusted gross margin expanded 90 basis points to 24.6%.
Research and development expenses were $33.9 million, down 17.9% year over year. Selling and marketing expenses plunged 30.1% on a year-over-year basis to $29.7 million.
IRBT recorded adjusted operating loss of $40 million compared with $62.3 million in the year-ago period. The adjusted operating margin was (26.6%) compared with (38.9%) in the year-ago quarter.
Balance Sheet and Cash Flow
While exiting first-quarter 2024, iRobot had cash and cash equivalents of $118.4 million compared with $185.1 million recorded at the end of fourth-quarter 2023. Total long-term liabilities were $214.7 million compared with $250.1 million at fourth-quarter 2023-end.
In the first three months of 2024, it generated net cash of $1.44 billion form operating activities against net cash of $94.5 million used in the prior-year period. Capital used for purchasing property and equipment plunged 91.9% on a year-over-year basis to $118 million.
Second-Quarter & Full-Year 2024 Outlook
For second-quarter 2024, the company expects net sales in the range of $167-$172 million. The figure indicates a decrease from $237 million reported in the year-ago quarter.
Adjusted gross margin is estimated in the band of 24-25%. Management projects adjusted loss per share in the band of $1.74-$1.81. The metric was higher than the adjusted loss of $1.42 in the year-earlier quarter.
For 2024, management forecasts net sales in the range of $815-$860 million. The figure implies a fall from $891 million reported in 2023.
Adjusted gross margin is envisioned in the band of 31-33%. Management projects adjusted loss per share in the band of $2.71–$3.13. The metric was lower than the adjusted loss of $7.73 in 2023.
Zacks Rank and Key Picks
IRBT currently carries a Zacks Rank #3 (Hold). Here are some better-ranked stocks from the Zacks Industrial Products sector:
The Zacks Consensus Estimate for LXFR’s 2024 earnings has remained stable in the past 60 days.
Crane Company (CR - Free Report) presently carries a Zacks Rank of 2 (Buy). It delivered a trailing four-quarter average earnings surprise of 15.2%.
In the past 60 days, the Zacks Consensus Estimate for CR’s 2024 earnings has increased 3.3%.
RBC Bearings Incorporated (RBC - Free Report) currently carries a Zacks Rank of 2. RBC delivered a trailing four-quarter average earnings surprise of 6.4%.
In the past 60 days, the Zacks Consensus Estimate for its 2024 earnings has increased 0.6%.
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iRobot (IRBT) Incurs Narrower-Than-Expected Net Loss in Q1
iRobot Corporation (IRBT - Free Report) reported first-quarter 2024 adjusted loss of $1.53 per share, narrower than the Zacks Consensus Estimate of a loss of $2.03. The reported figure compares favorably with the year-ago quarter’s net loss of $1.67.
Revenue Details
iRobot generated revenues of $150 million in the reported quarter, beating the Zacks Consensus Estimate of $139 million. On a year-over-year basis, revenues decreased 6.4% due to lower sales across all product categories.
Sales derived from premium and mid-tier robots accounted for 81% of IRBT’s total robot revenues, lower than 88% in the year-ago quarter.
Total product units of 456 thousand were shipped in the quarter under review, reflecting a year-over-year increase of 4.6%, while average selling prices decreased 13.9%.
For solo and other products, revenues of $94 million reflected a decline of 30.4% year over year. Units shipped were 267 thousand, down 28.4% year over year.
Revenues from 2-in-1 products increased 124% year over year to $56 million. Units shipped were 189 thousand, up from 63 thousand recorded in the year-ago quarter.
On a regional basis, iRobot sourced 45.9% of revenues from domestic operations and the rest came from the international arena. Domestic revenues totaled $68.9 million, reflecting a 4.3% fall on a year-over-year basis. International revenues decreased 8.2% year over year to $81.1 million.
iRobot Corporation Price, Consensus and EPS Surprise
iRobot Corporation price-consensus-eps-surprise-chart | iRobot Corporation Quote
Margin Profile
Cost of revenues decreased 7.8% year over year to $113.9 million. Adjusted gross profit was $36.9 million, down 2.6% year over year, while the adjusted gross margin expanded 90 basis points to 24.6%.
Research and development expenses were $33.9 million, down 17.9% year over year. Selling and marketing expenses plunged 30.1% on a year-over-year basis to $29.7 million.
IRBT recorded adjusted operating loss of $40 million compared with $62.3 million in the year-ago period. The adjusted operating margin was (26.6%) compared with (38.9%) in the year-ago quarter.
Balance Sheet and Cash Flow
While exiting first-quarter 2024, iRobot had cash and cash equivalents of $118.4 million compared with $185.1 million recorded at the end of fourth-quarter 2023. Total long-term liabilities were $214.7 million compared with $250.1 million at fourth-quarter 2023-end.
In the first three months of 2024, it generated net cash of $1.44 billion form operating activities against net cash of $94.5 million used in the prior-year period. Capital used for purchasing property and equipment plunged 91.9% on a year-over-year basis to $118 million.
Second-Quarter & Full-Year 2024 Outlook
For second-quarter 2024, the company expects net sales in the range of $167-$172 million. The figure indicates a decrease from $237 million reported in the year-ago quarter.
Adjusted gross margin is estimated in the band of 24-25%. Management projects adjusted loss per share in the band of $1.74-$1.81. The metric was higher than the adjusted loss of $1.42 in the year-earlier quarter.
For 2024, management forecasts net sales in the range of $815-$860 million. The figure implies a fall from $891 million reported in 2023.
Adjusted gross margin is envisioned in the band of 31-33%. Management projects adjusted loss per share in the band of $2.71–$3.13. The metric was lower than the adjusted loss of $7.73 in 2023.
Zacks Rank and Key Picks
IRBT currently carries a Zacks Rank #3 (Hold). Here are some better-ranked stocks from the Zacks Industrial Products sector:
Luxfer Holdings (LXFR - Free Report) presently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter average earnings surprise of 122.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LXFR’s 2024 earnings has remained stable in the past 60 days.
Crane Company (CR - Free Report) presently carries a Zacks Rank of 2 (Buy). It delivered a trailing four-quarter average earnings surprise of 15.2%.
In the past 60 days, the Zacks Consensus Estimate for CR’s 2024 earnings has increased 3.3%.
RBC Bearings Incorporated (RBC - Free Report) currently carries a Zacks Rank of 2. RBC delivered a trailing four-quarter average earnings surprise of 6.4%.
In the past 60 days, the Zacks Consensus Estimate for its 2024 earnings has increased 0.6%.