Seeking Alpha

iRobot reverses course; strong top-line guidance praised

  • 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).

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Comments (2)
  • TFCAB
    , contributor
    Comments (2008) | Send Message
     
    AH is a joke
    6 Feb 2014, 02:06 PM Reply Like
  • Stan Ackman
    , contributor
    Comments (1129) | Send Message
     
    I almost pulled the trigger to buy more in AH yesterday. I already have a lot of IRBT. For a whole seller like IRBT, one quarter's underperformance is not that big of deal. The point is whole year 2014 guidance is really strong.
    6 Feb 2014, 02:13 PM Reply Like
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