Yahoo Finance Why iRobot Stock Popped Today
What happened
Shares of iRobot Corporation (NASDAQ: IRBT) were up 21.4% as of 10:30 a.m. EDT Wednesday after the home-robotics specialist announced stellar second-quarter 2018 results.
As for headline numbers, iRobot's quarterly revenue climbed 23.6% year over year to $226.3 million, which translated to more than 30% growth in net income to $10.5 million, or $0.37 per share. By contrast, most investors were only anticipating earnings of $0.18 per share on revenue of $219.7 million.
Braava robot revenue soared 50% year over year in Q2. Image source: iRobot.
So what
iRobot CEO Colin Angle noted that the company enjoyed growth in all major regions, with sales up 15% in the U.S.; 51% in Europe, the Middle East, and Africa; and 31% in Japan. In particular, the Roomba vacuum line enjoyed stellar sales in both the U.S. and abroad as a featured product during Amazon's Prime Day sale, and thanks to the Mother's Day and Father's Day holidays during the quarter. Sales of floor-mopping robot Braava also climbed 50% year over year this quarter, driven by international demand.
Now what
What's more, iRobot increased its full-year 2018 guidance to call for revenue of $1.06 billion to $1.08 billion (a $10 million boost from the bottom end of its previous range), and for earnings per share of $2.30 to $2.50 (up from $2.15 to $2.40 before).
With shares still yet to fully recover from a big post-earnings drop in February -- when iRobot's initial conservative 2018 guidance overshadowed a strong 2017 holiday season -- I should hope this report will be more than enough to make bearish investors reconsider their position.
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Steve Symington owns shares of iRobot. The Motley Fool owns shares of and recommends iRobot. The Motley Fool has a disclosure policy.
