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iRobot (IRBT) Partners IFTTT for Smart Home Integrations

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iRobot Corporation (IRBT - Free Report) recently announced that it has entered into a collaboration with the major integration and discovery platform — IFTTT.

Notably, iRobot and IFTTT will work on integrating various smart devices and services within the iRobot HOME App. The collaboration will involve iRobot to leverage IFTTT’s Connect product and create in-app integrations. This will enable the company to enhance customer experience by facilitating easy integration of its devices with other products.

One of the enhanced smart home experiences that iRobot is likely to offer to its customers is the ability to assign its Roomba and Braava products in cleaning rooms with the help of voice assistant integrations. As noted by the company, customers can also schedule the timing for cleaning purposes per their choice. We believe such partnerships are likely to create new opportunities for the company’s automation field and boost its connected product base.

Although iRobot’s diversified product portfolio and innovative capabilities have been benefiting it over time, the global industrial robotics market is facing headwinds from the imposition of trade tariffs for robotic vacuums. Higher tariffs on China imports might put additional cost pressure on iRobot, and in turn weigh on revenues and margins. For 2019, the company expects to incur $35-$40 million of tariff-related costs.

Analysts have become increasingly bearish about the company over the past seven days. The Zacks Consensus Estimate has been revised downward by 7.8% to $1.19 for 2020 on account of one downward estimate revision versus none upward. This makes us cautious about the stock.

Over the past year, the Zacks Rank #4 (Sell) company has lost 45.2% against the industry’s increase of 19.6%.

Stocks to Consider

Some better-ranked stocks from the Zacks Industrial Products sector are Berry Global Group, Inc. (BERY - Free Report) , ABB Ltd and Actuant Corporation (EPAC - Free Report) . While Berry Global sports a Zacks Rank #1 (Strong Buy), ABB and Actuant carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Berry Global delivered average earnings surprise of 0.70% in the trailing four quarters.

ABB pulled off average positive earnings surprise of 2.89% in the trailing four quarters.

Actuant delivered average earnings surprise of 18.57% in the trailing four quarters.

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