iRobot Corporation IRBT is scheduled to release fourth-quarter 2018 results on Feb 6, after the market closes.
The company delivered better-than-expected results in the last four quarters, the average being a positive 102.97%. Notably, in the last reported quarter, the company’s earnings of $1.12 surpassed the Zacks Consensus Estimate of 44 cents by 154.55%.
In the past three months, shares of iRobot have decreased 8.8% compared with the industry’s decline of 3.7%.
Let us see how things are shaping up for iRobot this quarter.
Factors to Affect Q4 Results
Makers of industrial robots and automated products are currently gaining from the favorable demand in the United States and internationally. Also, technological advancements, as well as rising popularity of these products in the household market, and marketing investments are benefiting companies like iRobot.
This industrial robots manufacturer is benefiting from the solid product portfolio, including robust sales from newly-launched products like Roomba e5 and Roomba i7. These specific products gained wide acceptance in overseas markets and will play an important role in boosting the company’s top-line performance in the quarter under review. In addition, other products (including i7/i7+ Roomba) and increased marketing for Braava products will be beneficial for iRobot.
Further, solid revenues, operational efficacy, cost-saving actions and lower taxes will help in boosting iRobot’s margins and profitability. The company did not provide any quarterly figure. A look at its projections for 2018 will fairly give an idea about the to-be-reported quarter. Revenues in 2018 are anticipated to be $1.08-$1.09 billion, reflecting year-over-year growth of 22-23% and earnings are predicted to be $2.55-$2.75 per share.
However, iRobot is currently dealing with adverse impact of tariffs on import of products like robotic vacuum cleaners in China. Such trade restrictions are putting pressure on the company’s business and inflating costs. In addition, business rivalry is intense in the robotic vacuum-cleaning market of the United States.
Earnings Whispers
Our proven model provides some idea about the stocks that are about to release their earnings results. Per the model, a stock needs a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The case with iRobot has been provided below.
Earnings ESP: iRobot has an Earnings ESP of 0.0% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at 51 cents.
iRobot Corporation Price, Consensus and EPS Surprise
Zacks Rank: The company currently sports a Zacks Rank #1.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some companies in the Zacks Industrial Products sector that you may want to consider as they have the right combination of elements to post an earnings beat this quarter, according to our model.
HD Supply Holdings, Inc. HDS has an Earnings ESP of +1.50% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Terex Corporation TEX has an Earnings ESP of +3.17% and a Zacks Rank #3.
MRC Global Inc. MRC has an Earnings ESP of +8.25% and a Zacks Rank #3.
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