IRobot Shares Soar 14% As Q3 Results Top Estimates, Boosts 2014 Outlook

(RTTNews) - Shares of iRobot Corp. (IRBT) soared more than 14 percent in extended trading on Tuesday after the robotics technology company raised its full-year 2014 outlook as results for the third quarter topped analysts' expectations. The company also reported a profit that nearly doubled from last year, reflecting improved margins and increased revenues amid growth in Home Robots.

"I am pleased to report an outstanding third quarter, with results that exceeded our expectations, as a number of orders, in both Home and D&S, originally expected in Q4 were received and delivered in Q3," Chairman and CEO Colin Angle said in a statement.

The Bedford, Massachusetts-based robotic vacuum cleaner maker reported net income of $14.61 million or $0.48 per share for the third quarter, up from $7.80 million or $0.26 per share in the prior-year quarter.

On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.33 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew to $143.50 million from $124.50 million in the same quarter last year, and topped seven Wall Street analysts consensus estimate of $134.33 million.

"Home Robot growth of 19 percent year-over-year drove total company revenue growth of 15 percent in Q3. Revenue in our Defense & Security business exceeded our expectations for the third quarter, and we exited Q3 with $25 million in backlog," Angle stated.

Domestic growth of 31 percent, coupled with International revenue growth of 13 percent, fueled a 19 percent year-over-year increase in Home Robot revenue to $132.01 million. Defense & Security revenue was up six percent to $10.67 million from last year.

Gross margin for the quarter improved 390 basis points to 47.3 percent from last year's 43.4 percent.

Looking ahead to the fourth quarter, iRobot expects earnings in a range of $0.26 to $0.31 per share, on projected revenues between $158 million to $167 million. Analysts currently expect the company to report earnings of $0.35 per share on quarterly revenues of $167.84 million.

For fiscal 2014, the company raised its earnings guidance to a range of $1.20 to $1.25 per share from the prior forecast in the range of $1.10 to $1.20 per share, while continuing to project revenues between $555 million to $565 million.

Street is currently looking for full-year 2014 earnings of $1.14 per share on annual revenues of $556.20 million.

"Based on our visibility into the fourth quarter, we are maintaining our full-year revenue expectations and increasing our EPS and Adjusted EBITDA expectations," Angle added.

IRBT closed Tuesday's regular trading session at $31.61, up $0.96 or 3.13% on a volume of 1.34 million shares. The stock surged a further $4.54 or 14.36% in after-hours trading.