Categories Analysis, Technology

iRobot (IRBT) gets charged on upbeat Q2 outlook

The advancement in robotic science and AI is helping in fighting the spread of COVID-19. As the pandemic forces large populations to remain in their homes, cleaning products are increasingly getting popular with the consumers.

Today, consumer robot maker iRobot (NASDAQ: IRBT) stated that the company has experienced “stronger-than-expected orders” during the second quarter of 2020 as consumers worldwide are using more of its Roomba robot vacuums and Braava robot mops to address their home floor care needs. Based on the strong orders, the company expects its topline to be better than the previous outlook. IRBT stock, which surged 9.56% today, has more than doubled from its 52-week low of $32.79 on March 19, 2020.

Overview

The Bedford, Massachusetts-based firm designs and sells robots that help consumers to clean their homes. iRobot sells Roomba robot vacuums and Braava robot mops through a variety of distribution channels, including chain stores and other national retailers, on-line stores, and value-added distributors and resellers worldwide. Apart from North America, the company sells its products in EMEA, China and Japan regions.

Q1 performance

As the company previously stated in March, its Q1 revenue fell short of the company’s original expectations. iRobot also withdrew its full-year 2020 guidance. First quarter revenue of $193 million declined 19% from the prior year. The company reported a loss of $0.32 per share.

The disruption of COVID-19 affected the company’s sales and supply chain activities in March. iRobot couldn’t completely fulfill first quarter demand for its i7+ and s9+ products, due to design-driven engineering and supply chain challenges that were unexpectedly complicated by the impact of COVID-19.

Outlook

During the first quarter earnings reporting, iRobot projected Q2 revenue to be modestly below Q1 revenue of $193 million citing the challenges faced by its retail partners and consumers.  iRobot now eyes Q2 revenue to be in the range of $260 million to $270 million. The company also expects to return to operating profitability for the second quarter. Earlier, the company had expected a sizeable second-quarter non-GAAP loss from operations.

CEO Colin Angle stated,

Our anticipated second-quarter 2020 financial performance will be substantially better than we originally expected. We have experienced strong demand thus far into the second quarter, particularly in the U.S., with solid growth in our premium products. Maintaining a clean home has become a higher priority for many consumers as COVID-19 has forced people to spend more time in their homes.”

While the company expects second half results to be better than first half results, it estimates 2020 revenue to be lower than the previous year’s levels. iRobot will be reporting its second quarter results in late July. We have to wait until then to get the complete details of the June quarter ending results and 2020 outlook.

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