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Quarterly adjusted earnings came in at 37 cents per share, higher than the year-ago tally of 27 cents. The bottom line also outpaced the Zacks Consensus Estimate by a massive 117.6%.
Revenues in the reported quarter came in at $226.3 million, higher than the year-ago tally of $183.1 million. The top line also exceeded the Zacks Consensus Estimate by 2.3%.
Domestic sales improved 14.6% year over year to $111.5 million. Also, international revenues in the quarter came in at $114.8 million, up 33.7% year over year.
iRobot Corporation Price, Consensus and EPS Surprise
Cost of revenues in the second quarter was $108.4 million, up 16.2% year over year. Adjusted gross margin was 52.1%, up 300 basis points (bps) year over year.
Total operating expenses in the quarter came in at $104.6 million, up from $85.8 million recorded in the year-ago period. Operating margin expanded 370 bps year over year to 5.9%.
Cash Flow/Balance Sheet
Exiting the second quarter, iRobot had cash and cash equivalents of $88.8 million, down from $128.6 million recorded as of Dec 31, 2017. Total long-term liabilities were $18 million, down from $23.5 million recorded at the end of 2017.
In first-half 2018, iRobot generated $26.3 million cash from operating activities, down from $32.8 million recorded in the comparable period last year. Capital expenditure was $14.3 million, up from $13.3 million reported in the year-ago period.
Outlook
iRobot believes higher sales of its state-of-the-art home-robotic products and ongoing marketing programs will aid in boosting its competency in the near future. Based on the existing market conditions, the company has revised its revenue guidance for 2018 to $1.06-$1.08 billion from the previous expectation of $1.05-$1.08 billion. Additionally, iRobot has raised its earnings view for the year to $2.30-$2.50 per share, from the prior projection of $2.15-$2.40 per share.
Zacks Rank and Stocks to Consider
iRobot currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Industrial Products sector are listed below:
Apogee Enterprises, Inc. (APOG - Free Report) carries a Zacks Rank #2 (Buy). The company delivered an average positive earnings surprise of 0.88% over the trailing four quarters.
DXP Enterprises, Inc. (DXPE - Free Report) is another Zacks #2 Ranked company. The company came up with an average positive earnings surprise of 70.97% over the preceding four quarters.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
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iRobot (IRBT) Beats on Q2 Earnings, Raises 2018 EPS View
iRobot Corporation (IRBT - Free Report) reported better-than-expected results for second-quarter 2018.
Earnings/ Revenues
Quarterly adjusted earnings came in at 37 cents per share, higher than the year-ago tally of 27 cents. The bottom line also outpaced the Zacks Consensus Estimate by a massive 117.6%.
Revenues in the reported quarter came in at $226.3 million, higher than the year-ago tally of $183.1 million. The top line also exceeded the Zacks Consensus Estimate by 2.3%.
Domestic sales improved 14.6% year over year to $111.5 million. Also, international revenues in the quarter came in at $114.8 million, up 33.7% year over year.
iRobot Corporation Price, Consensus and EPS Surprise
iRobot Corporation Price, Consensus and EPS Surprise | iRobot Corporation Quote
Costs/Margins
Cost of revenues in the second quarter was $108.4 million, up 16.2% year over year. Adjusted gross margin was 52.1%, up 300 basis points (bps) year over year.
Total operating expenses in the quarter came in at $104.6 million, up from $85.8 million recorded in the year-ago period. Operating margin expanded 370 bps year over year to 5.9%.
Cash Flow/Balance Sheet
Exiting the second quarter, iRobot had cash and cash equivalents of $88.8 million, down from $128.6 million recorded as of Dec 31, 2017. Total long-term liabilities were $18 million, down from $23.5 million recorded at the end of 2017.
In first-half 2018, iRobot generated $26.3 million cash from operating activities, down from $32.8 million recorded in the comparable period last year. Capital expenditure was $14.3 million, up from $13.3 million reported in the year-ago period.
Outlook
iRobot believes higher sales of its state-of-the-art home-robotic products and ongoing marketing programs will aid in boosting its competency in the near future. Based on the existing market conditions, the company has revised its revenue guidance for 2018 to $1.06-$1.08 billion from the previous expectation of $1.05-$1.08 billion. Additionally, iRobot has raised its earnings view for the year to $2.30-$2.50 per share, from the prior projection of $2.15-$2.40 per share.
Zacks Rank and Stocks to Consider
iRobot currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Industrial Products sector are listed below:
Graco Inc. (GGG - Free Report) sports a Zacks Rank of 1 (Strong Buy). The company pulled off an average positive earnings surprise of 12.81% over the past four quarters. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apogee Enterprises, Inc. (APOG - Free Report) carries a Zacks Rank #2 (Buy). The company delivered an average positive earnings surprise of 0.88% over the trailing four quarters.
DXP Enterprises, Inc. (DXPE - Free Report) is another Zacks #2 Ranked company. The company came up with an average positive earnings surprise of 70.97% over the preceding four quarters.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>