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iRobot (IRBT) Reports Q2 Loss, Misses Revenue Estimates

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iRobot Corporation (IRBT - Free Report) reported second-quarter 2024 adjusted loss of $1.96 per share, wider than the Zacks Consensus Estimate of a loss of $1.77 per share. The reported figure compares unfavorably with the year-ago quarter’s net loss of $1.42 per share.

Revenue Details

iRobot generated revenues of $166.4 million, which missed the Zacks Consensus Estimate of $168 million. On a year-over-year basis, revenues decreased 29.7% due to lower sales across all product categories.

Sales derived from premium and mid-tier robots accounted for 76% of IRBT’s total robot revenues, lower than 84% in the year-ago quarter.

Total product units of 574 thousand were shipped, reflecting a year-over-year decrease of 30.9%, while average selling prices declined 4.9%.

For solo and other products, revenues of $90 million reflected a decline of 52.1% year over year. Units shipped were 300 thousand, down 55.4% year over year.

Revenues from two-in-one products increased 55.1% year over year to $76 million. Units shipped were 274 thousand, up from 159 thousand recorded in the year-ago quarter.

On a regional basis, iRobot sourced 50.7% of revenues from domestic operations while the rest came from the international arena. Domestic revenues totaled $84.4 million, reflecting a 35.6% fall on a year-over-year basis. International revenues decreased 22.4% year over year to $82 million.

iRobot Corporation Price, Consensus and EPS Surprise iRobot Corporation Price, Consensus and EPS Surprise

iRobot Corporation price-consensus-eps-surprise-chart | iRobot Corporation Quote

Margin Profile

The cost of revenues decreased 24.1% year over year to $138.9 million. Adjusted gross profit was $27.7 million, down 49.5% year over year, while the adjusted gross margin decreased 650 basis points to 16.7%.

Research and development expenses were $23.2 million, down 38.8% year over year. Selling and marketing expenses declined 28.1% on a year-over-year basis to $40 million.

IRBT recorded an adjusted operating loss of $61.1 million compared with $71.1 million in the year-ago period. The adjusted operating margin was (29%) compared with (21.3%) in the year-ago quarter.

Balance Sheet and Cash Flow

While exiting the second quarter, iRobot had cash and cash equivalents of $108.5 million compared with $185.1 million recorded at the end of fourth-quarter 2023. Total long-term liabilities were $215.2 million compared with $250.1 million at fourth-quarter 2023-end.

In the first six months of 2024, the company used net cash of $20.2 million from operating activities compared with net cash of $58.1 million used in the prior-year period. Capital used for purchasing property and equipment declined 95.3% on a year-over-year basis to $118 million.

Outlook

For the third quarter, the company expects net sales to be in the range of $217-$223 million. The Zacks Consensus Estimate for net sales is pegged at $202 million.

The adjusted gross margin is estimated to be in the band of 33-34%. Management projects adjusted loss per share to be in the band of 1-11 cents. The consensus estimate for adjusted earnings is pegged at 29 cents per share.

For 2024, management forecasts net sales to be in the range of $765-$800 million. The Zacks Consensus Estimate for net sales is pegged at $839.8 million.

The adjusted gross margin is envisioned to be in the band of 28-29%. Management projects adjusted loss per share to be in the band of $3.31–$3.77. The consensus estimate for adjusted earnings is pegged at $3.04 per share.

Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Industrial Companies

Pentair plc (PNR - Free Report) reported second-quarter adjusted earnings per share of $1.22, which beat the Zacks Consensus Estimate of $1.15. The reported figure also improved 18% from the year-ago quarter.

Net sales rose 1.6% year over year to $1.1 billion. PNR’s top line outpaced the Zacks Consensus Estimate of $1.09 billion. 

Crown Holdings, Inc. (CCK - Free Report) reported second-quarter adjusted earnings per share of $1.81, which beat the Zacks Consensus Estimate of $1.59. The bottom line improved 8% year over year.

Net sales totaled $3.04 billion, down 2.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.06 billion.

A. O. Smith Corporation’s (AOS - Free Report) second-quarter adjusted earnings of $1.06 per share missed the Zacks Consensus Estimate of $1.07. However, the bottom line increased 5% on a year-over-year basis.

Net sales of $1.02 billion surpassed the consensus estimate of $992 million. The top line increased 7% year over year, driven by strong demand for residential and commercial water heaters in North America.


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