Down in AH trading yesterday following its Q4 report, iRobot (IRBT +15.1%) is now up sharply, as investors focus on the company's Q4 beat and strong 2014 revenue guidance more than its light Q1 guidance and 2014 EPS forecast.
Needham (Buy) has upped its PT to $41 from $39. The firm is pleased with the 31% Y/Y Q4 growth seen by iRobot's home robot business (86% of revenue) on the back of 50% U.S. sales growth, and expects the business to keep up its momentum in 2014. It's also upbeat about the potential of iRobot's telepresence robots.
Gross margin rose 240 bps Y/Y in Q4, as higher defense/security margins offset a 160 bps drop in home robot margins. 494K home robot units were shipped at an ASP of $223 (+$8 Q/Q and +$6 Y/Y).