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IRobot (IRBT) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
Comfort Systems (FIX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

In the latest trading session, iRobot (IRBT) closed at $90.21, marking a -0.41% move from the previous day. This change lagged the S&P 500's daily loss of 0.12%. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.32%.

Heading into today, shares of the robotics technology company had gained 1.24% over the past month, lagging the Industrial Products sector's gain of 5.73% and the S&P 500's gain of 3.31% in that time.

Investors will be hoping for strength from IRBT as it approaches its next earnings release, which is expected to be July 23, 2019. The company is expected to report EPS of $0.03, down 91.89% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $267.90 million, up 18.37% from the year-ago period.

IRBT's full-year Zacks Consensus Estimates are calling for earnings of $3.16 per share and revenue of $1.29 billion. These results would represent year-over-year changes of -39.92% and +18%, respectively.

Any recent changes to analyst estimates for IRBT should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.83% lower within the past month. IRBT is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, IRBT is holding a Forward P/E ratio of 28.7. For comparison, its industry has an average Forward P/E of 23.43, which means IRBT is trading at a premium to the group.

It is also worth noting that IRBT currently has a PEG ratio of 1.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. IRBT's industry had an average PEG ratio of 2.38 as of yesterday's close.

The Industrial Automation and Robotics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 225, which puts it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow IRBT in the coming trading sessions, be sure to utilize Zacks.com.


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