iRobot Boosts Cleaning Experiences With New Robot Platform
iRobot Corporation IRBT announced the introduction of a robot platform — iRobot Genius Home Intelligence — for providing better cleaning services to customers.
Notably, the new interface for the platform is a redesigned iRobot Home app, which will offer enhanced digital features and superior user experience for its Wi-Fi-connected products like Roomba robot vacuum and Braava jet robot mop.
One of the enhanced smart home experiences, which iRobot is likely to offer to customers, is the ability to assign its Roomba and Braava products in cleaning rooms with the help of the app and voice assistant integrations. As noted, the enhanced app will make the company’s cleaning robots more customized, enabling the users to select the cleaning method, places and time for cleaning purposes per their convenience.
With the enhanced features on the app, the robots will also be empowered to identify and suggest setting up “clean zones” for areas, which are frequently used. We believe that such innovations are likely to create opportunities for the company’s automation field and boost its connected product base.
Our Take
iRobot has been benefitting from its solid product portfolio over time. For instance, in second-quarter 2020, revenues derived from premium robots — products having $500 of more as list price — increased 43% year over year. The company anticipates gaining from a healthy demand for advanced products like Roomba i7, Roomba s9 and Braava jet m6 as well as strengthening sell-through and a spur in the e-commerce business in the second half of 2020. Notably, revenue growth in the second half is likely to be in mid-single digits.
Also, the company’s investments in building brand awareness via campaigning through traditional retail partners, in its app and website, and online-retailers will help it in boosting product demand.
However, headings related to stiff competition, inventory-management by retailers, uneven demand trends across the globe and lower stimulus program by the government might play a spoilsport. In addition, its operating expenses are likely to rise on a sequential basis in the third quarter and marketing expenses to remain high in the fourth quarter, which remain concerning for its margins and profitability.
The Zacks Rank #3 (Hold) company’s shares have declined 3.6% against 4.7% growth recorded by the industry in the past three months.
Stocks to Consider
Some better-ranked companies from the Zacks Industrial Products sector are Chart Industries, Inc. GTLS, Altra Industrial Motion Corp. AIMC and Graco Inc. GGG. While Chart Industries currently sports a Zacks Rank #1 (Strong Buy), Altra Industrial and Graco carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chart Industries delivered an earnings surprise of 10.17%, on average, in the trailing four quarters.
Altra Industrial delivered an earnings surprise of 31.43%, on average, in the trailing four quarters.
Graco delivered an earnings surprise of 8.68%, on average, in the trailing four quarters.
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