iRobot: The reality of the robot invasion is true and today we trade the king of domestic robots – maker of the Roomba
It is an invasion. With the rise of AI and bots that can do things around the house like the roomba cleaner – this is the company on the forefront of the domestic robot revolution. Today we trade them and are expecting a nice jump move.
The question for investors is: Are vacuum-cleaning robots worth investing in? It may not seem like the kind of product investors should be excited about, but investing in robotic vacuums may be a smarter move than you think.
The technology that separates iRobot in RVCs from competitors like Dyson, Samsung, and Hoover is its sensing and mapping technology. Roombas simply perform better than their competitors, and that allows iRobot to spread its research and development (R&D) spending across more devices, which ultimately leads to higher profits. And the fact that it has greater scale in RVCs lowers costs as well. The leverage dynamic can be seen below, with gross margin and net income both on the rise over the last five years. It’s tough to gauge whether or not competitors are seeing higher margins because they’re either private (Dyson) or vacuums are a small portion of sales (Samsung), but iRobot’s trends indicate a strong position in the market.
But what about earnings?
The company pulled off an impressive average positive earnings surprise of 113.01% over the preceding four quarters. Notably, iRobot’s adjusted earnings per share in fourth-quarter 2017 came in at 54 cents per share, beating the Zacks Consensus Estimate of 26 cents.
Let’s see how things are shaping up prior to this announcement.
Get Your Jump Report Here
iRobot (IRBT), maker of Roomba vacuuming robots, fell 6% ahead of Tuesday’s results, tumbling $3.93 to $59.95. IRobot CEO Colin Angle told Barron’s in a statement: “We are in a time of rapid advances and increased adoption of connected robotic technologies and applications in the home. While we have no knowledge of anything that Amazon is working on, I have always said that the potential for home robot innovation is virtually endless.
Get Your ‘IRBT’ Jump Report Here
iRobot, Inc. (IRBT) will be posting its FQ1-18 quarterly earnings results today at close. [IRBT] is expected to post earnings of $.50 per share on revenue of $215.61 Million. In the last quarter, the company reported $.16 earnings per share MISSING the analysts’ consensus estimate of $.25
Last 3 Quarters – “Jump Zone” Move: -32.3%, -13.91%, 24.45%
Consensus Estimates: ($NA whisper) ($.57 estimize) ($.50 wall street)
The last 4 quarters of earnings releases
Huge jump zones on this one. Today we expect double digit profit in your pocket.
Someday it will be fun to tell your robot maid to clean up the dishes. For today, lets clean up on this one in the trade room.
Robots begin.