iRobot Earnings: IRBT Stock Plummets on EPS Beat, Yet Trade War Looms
iRobot (NASDAQ:IRBT) unveiled its latest quarterly earnings results late today, bringing in a profit that topped Wall Street’s guidance, while revenue did not–more importantly, IRBT stock was sinking as the company is feeling the effects of the looming trade war.
The space exploration and military defense business — based out of Bedford, Mass. — said it brought in a profit of 25 cents per share, which is stronger than the 3 cents per share that analysts called for. This figure is still lower than the 37 cents per share the company brought in during the same period a year ago.
Analysts were calling for iRobot to bring in a profit of 3 cents per share. The business added that its sales for the period tallied up to $260.2 million, which is also stronger than the $226.3 million from the year-ago quarter, but missed the $268 million that Wall Street predicted.
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However, a more pressing matter are the U.S. tariffs on its Chinese-made products that are hurting iRobot’s sales and earnings potential in the domestic scene, per CEO Colin Angle’s statement in a news release. “The direct and indirect impacts of the ongoing U.S.-China trade war and the recently implemented 25% tariffs are likely to constrain U.S. market segment growth in the second half of the year below our expectations at the start of 2019,” Angle added.
IRBT stock is declining about 17.4% after hours following the company’s quarterly earnings results and the ripples effect of the trade war.
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