iRobot (NASDAQ: IRBT) topped earnings estimates for the second quarter of 2019 but revenues missed expectations, sending the stock crashing 15.9% in after-market hours on Tuesday.
Total revenue of $260.2 million rose 15% year-over-year, driven by double-digit expansion in all major geographic regions, but fell short of consensus estimates of $267.9 million.
Net income was $7.2
million, or $0.25 per share, compared to $10.4 million, or $0.37 per share, in
the year-ago quarter. Adjusted EPS totaled $0.48. Analysts had forecasted
earnings of $0.03 per share.
In the second quarter, revenues grew 12% in the US and 18% internationally. The company also launched the Roomba s9 vacuum and Braava jet m6 mop during the period.
Colin Angle, CEO
of iRobot said, “The successful launch of our new Roomba s9 vacuums and
Braava jet m6 mops at the end of May represented an important milestone in our
plans to strengthen Roomba leadership, extend the portfolio beyond vacuuming
and advance our position in the Smart Home.”
iRobot expects the impacts of the US-China trade war and the recently implemented 25% tariffs to constrain its US market segment growth in the second half of the year. Based on the year-to-date performance and the impact of tariffs on domestic segment growth, the company revised its guidance for the full year of 2019.
iRobot now expects revenues to grow approx. 10-14% year-over-year to a range of $1.2-1.25 billion. This compares to the previous range of $1.28-1.31 billion. EPS is expected to be $2.40-3.15 versus the prior outlook of $3.15-3.40.
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