IRobot (IRBT) Q1 Earnings: What's In Store For The Stock?
Zacks Investment Research | Apr 21, 2017 07:20AM ET
iRobot Corporation (NASDAQ:IRBT) is scheduled to report its first-quarter 2017 earnings after the opening bell on Apr 25, 2017.
Bedford, MA-based iRobot is one of the leading manufacturers of robots worldwide. The company is a leader not only in the domestic arena but also in the field of commercial usage.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
iRobot expects to generate higher revenues in the quarter on the back of stunning market response to new wet floor category products, stronger demand in the Smart Home market, increased penetration of Roomba in the U.S., solid business in certain niche overseas markets like Japan and higher sales of Braava in Asia.
Notably, iRobot is poised to grow on the back of meaningful innovations, strategic marketing programs and diligent restructuring initiatives.
However, the company relies on single source contract manufacturers and hence, its brand status and business performance are both highly dependent on them. For instance, almost all the contract manufacturers of iRobot’s home robotic products belong to China.
iRobot conducts its business in a highly dynamic and competitive technology market. Prominent product or process innovation of major industry rivals might adversely impact its market share in the future. Moreover, the company’s future commercial success highly depends on its ability to penetrate in the consumer home-care market. Hence, iRobot makes constant efforts to reinforce its consumer robotics trade by developing new products at competitive prices. However, such developments involve a lot of risk, cost and time. Inability to introduce new products or deliver the same within appropriate time might considerably hurt the company’s top-line growth in the quarters ahead.
Earnings Whispers
Our proven model does not conclusively show that iRobot is likely to beat earnings this quarter. That is because a stock needs to have both a positive Original post
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