iRobot (NASDAQ: IRBT) is scheduled to report third-quarter 2019 earnings results after the closing bell on Tuesday, October 22. The maker of robotic home appliances is expected to report lower earnings and revenues during the quarter, hurt by headwinds related to the US-China trade tariffs.
When the company last reported results in July, it saw weakness in top-line growth despite beating bottom-line estimates. This forced iRobot to cut full year revenue target to a range of $1.20-1.25 billion, from the previous range of $1.28-1.31 billion. EPS outlook was also slashed to $2.40-3.15, versus the prior outlook of $3.15-3.40.
iRobot’s primary market is North America but most of its manufacturing happens in China, thus placing it in a tough spot. The company had last quarter stated that it sees the recently implemented 25% tariffs to constrain its US market segment growth in the second half of the year.
Of course, iRobot is in the process of shifting production from China to Malaysia to offset some of the tariff headwinds, but any material impact from these activities will take at least another two quarters to shape up.
The company already holds an enviable share of around 60% in the robot vacuum market. But price hikes driven by tariffs as well as competition from new entrants will become a major spoilsport. While Terra-branded lawn movers are on the way, it should be noted that the market for robotic movers are not as large as that of robotic vacuums.
For the third quarter, analysts expect earnings of $0.52 per share, compared to $1.12 per share. Revenues are projected to slip 2% to $259.38 million.
IRBT stock has tumbled 28% since the beginning of this year. It has a Moderate Buy rating in the market.
Most Popular
United Parcel Service (UPS) seems on track to regain lost strength
Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic
IPO Alert: What to look for when Boundless Bio goes public
Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.
Nike (NKE) bets on innovation and partnerships to return to high growth
Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company