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)
  • Trader's Profit Compass
    , contributor
    Comments (2068) | Send Message
     
    AH is a joke
    6 Feb 2014, 02:06 PM Reply Like
  • Stan Ackman
    , contributor
    Comments (1910) | 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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