IRobot Profit Falls, Sees Weak Q4; Shares Plunge

(RTTNews) - iRobot Corp. (IRBT) Tuesday reported a lower profit for the third quarter, hurt mainly by lower revenues and higher operating expenses. Earnings for the quarter came in ahead of analysts' estimates, but revenues fell short of expectations.

Moving ahead, the company provided a weak outlook for the fourth quarter. iRobot shares plunged over nine percent in after-hours trade, following the announcement of results.

Commenting on the results, Chief Executive Colin Angle said, "I am pleased to report that we delivered Q3 results in line with our expectations. We saw strong growth in our Home Robot business, and are excited to announce a next generation home robot for the fourth quarter. Overseas, strong demand in Asia continued and we are seeing signs of recovery in Europe."

Bedford, Massachusetts-based iRobot's third-quarter profit dropped to $7.80 million or $0.26 per share from $15.21 million or $0.54 per share last year. On average, seven analysts polled by Thomson Reuters expected a profit of $0.24 per share for the quarter. Analysts' estimates typically exclude special items.

The robotic vacuum cleaner maker's revenues declined to $124.50 million from $126.30 million a year ago. Fourteen analysts on consensus expected revenues of $127.35 million for the quarter.

Operating expenses for the quarter increased to $43.0 million from $35.7 million last year.

Looking forward to the fourth quarter, iRobot expect earnings in the range of $0.06 of $0.11 per share and revenues of $124 million to $129 million. Analysts currently expect earnings of $0.17 per share on revenues of $128.99 million.

The company now expects full year earnings of $0.90 to $0.95 per share and revenues of $485 million to $490 million. Analysts currently expect a profit of $0.98 per share on revenues of $492.18 million for the year.

Previously, iRobot expected a profit of $0.88 to $1.00 per share and revenues of $485 to $495 million.

IRBT closed Tuesday at $36.45, up $0.35 or 0.97%, on the Nasdaq. The stock slipped $3.45 or 9.47% in after hours trade.