iRobot Corporation (NASDAQ: IRBT)
IRobot reported their fiscal second quarterly earnings after the market closed on Tuesday July 24th, 2018. Shares, which had closed the regular trading day down $2.06 at $71.19 rocketed higher after their earnings announcement was released.
Once the investors got a hold of the positive earnings information, shares rocketed up $13.43 or 18.87% closing at $84.62.
The company is well known for its Roomba, the robotic, automatic vacuum cleaners that basically do the cleaning for you while you work or sleep or lounge on the couch.
The company reported bringing in 10.5 million dollars in net income which was $0.37 per share. Sales came in at 226 million dollars. Analysts had been expecting $0.18 per share and revenue of 220 million dollars.
Not only did the company blow away or earnings, but they also guided higher for the upcoming earnings season.
This means that 41% of the shares have been sold by traders, hedge funds and speculators, who look to buy them back at lower prices.
However,it is clearly evident that they have been leaning on the wrong side of the trade and will have to cover those positions first thing in the morning which will drive the share price even higher than it normally would go.
Colin Angle, chairman and chief executive officer of iRobot had this to say about the company’s earnings: “We delivered strong second-quarter revenue growth of 24% in Q2 2018 over Q2 2017, driven by growth across all major regions. EMEA and Japan saw significant year-over-year growth of 51% and 31%, respectively. EMEA growth was driven in part by the revenue uplift from our acquisition of our largest European distributor, which was closed at the beginning of Q4 2017. Shipments to support Q2 holidays in the United States drove domestic revenue growth of 15% over last year,”
“We are continuing to execute against the strategy underlying our 2018 expectations and three-year financial targets which we believe is the most effective way to drive sustainable growth and shareholder value.”
iRobot Corporation designs, builds, and sells robots for the consumer market worldwide.
It offers Roomba floor vacuuming robots; Braava family of automatic floor mopping robots; and Mirra Pool Cleaning Robot to clean residential pools and removes debris as small as two microns from pool floors, walls, and stair.
The company sells its robots through various distribution channels, including chain stores and other national retailers, its online store, and value-added distributors and resellers. iRobot Corporation was founded in 1990 and is headquartered in Bedford, Massachusetts. -YahooFinance