Shares of iRobot Corporation IRBT were rising sharply Wednesday morning after the Roomba maker's second-quarter print was released after the close Tuesday.
What Happened
The company reported Q2 earnings per share of 37 cents compared to 27 cents per share last year.
Analysts, on average, estimated EPS of 18 cents per share.
Revenue climbed about 23.6 percent to $226.3 million, also surpassing estimates.
"Shipments to support Q2 holidays in the United States drove domestic revenue growth of 15 percent over last year," iRobot Chairman and CEO Colin Angle said in a statement.
The company indicated that growth was broad-based across all major regions, with the EMEA region and Japan recording revenue growth of 51 percent and 31 percent, respectively. Growth in the EMEA region received a shot in the arm from the acquisition of iRobot's largest European distributor, according to the company.
Why It's Important
The strong results should come as a relief for iRobot, especially as retail behemoth Amazon.com, Inc. AMZN is reportedly planning a foray into the consumer robot market.
"iRobot sees Amazon's announcement as a positive because it brings further validation and market awareness to the space," Gene Munster of Loup Ventures told Benzinga.
If Amazon enters the market, Munster said sees no near-term impact for iRobot until Amazon has a product on the market.
"We estimate the home robot market including vacuums, mops and lawn mowers equated to $1.7billion in 2017 and will grow to $5.7 billion by 2025," a 17.9-percent CAGR, Munster said.
"We believe this market is big enough for more than one player to compete, and see three to five companies emerging as dominant players in this space."
What's Next
Citing the second-quarter results and the outlook for the rest of 2018, iRobot raised the low end of its fiscal 2018 revenue guidance from $1.05 billion to $1.06 billion while maintaining the high end at $1.08 billion.
EPS guidance was lifted from $2.15-$2.40 to $2.30-$2.50.
The consensus estimates call for EPS of $2.37 and revenue of $1.07 billion for the year.
The stock was up 21.28 percent at $86.34 off the open Wednesday.
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Photo courtesy of iRobot.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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