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iRobot (IRBT) to Report Q1 Earnings: What's in the Offing?

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iRobot Corporation IRBT is scheduled to release first-quarter 2021 results on May 3, after market close.

The industrial robotic solutions provider delivered better-than-expected results in the trailing four quarters, beating estimates on all occasions. Earnings surprise was 228.19%, on average. Notably, in the last reported quarter, its earnings of 84 cents surpassed the Zacks Consensus Estimate of 20 cents by 320%.

In the past three months, shares of this industrial robot maker have decreased 9.5% compared with the industry’s growth of 5.5%.

Let us delve deeper.

Key Factors and Estimates for Q1

iRobot’s performances in the past few quarters have been benefiting from robust demand for products, especially Roomba, Braava and Terra products. Considering a surge in business from the online platforms and international operations, healthy demand is anticipated to have boosted sales performance in the first quarter of 2021 as well.

In addition to the aforementioned factors, the expansion of manufacturing activities in Malaysia, growth in direct-to-consumer sales and a healthy supply chain are expected to have aided iRobot’s performance. Further, product innovation and the company’s sound marketing activities are anticipated to have played important role in the quarter.

Quarterly revenues are expected to increase 35% or more from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for iRobot’s revenues is pegged at $262 million for the first quarter of 2021. This estimate suggests a 35.8% increase from the prior-year reported figure and a decline of 51.9% from the last reported quarter.

Then again, the resumption of tariff costs (roughly $3 million) as well as pressure related to marketing and promotional expenses is likely to have impacted margins in the first quarter. Operating costs are expected to be 30-40% of the quarter’s sales. Operating margin is expected to be between a breakeven level and 3% for the quarter.

The Zacks Consensus Estimate for first-quarter earnings is pegged at 6 cents, indicating a fall of 109.4% from the year-earlier reported number and a decline of 92.9% from the previous quarter’s figure.

Earnings Whispers

Our proven model doesn’t conclusively predict an earnings beat for iRobot this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of beating estimates. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: iRobot has an Earnings ESP of -166.67% as the Most Accurate Estimate of a loss of 4 cents is below the Zacks Consensus Estimate of earnings of 6 cents.

iRobot Corporation Price, Consensus and EPS Surprise

iRobot Corporation Price, Consensus and EPS Surprise
iRobot Corporation Price, Consensus and EPS Surprise

iRobot Corporation price-consensus-eps-surprise-chart | iRobot Corporation Quote

Zacks Rank: iRobot carries a Zacks Rank #3.

Stocks to Consider

Here are some stocks worth considering in the Zacks Industrial Products sector as our model shows that these have the right combination of elements to beat on earnings.

The Middleby Corporation MIDD currently has an Earnings ESP of +0.21% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Zebra Technologies Corporation ZBRA currently has an Earnings ESP of +1.63% and is a Zacks #2 Ranked stock.

Eaton Corporation plc ETN presently has an Earnings ESP of +1.96% and a Zacks Rank of 3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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Eaton Corporation, PLC (ETN) : Free Stock Analysis Report

The Middleby Corporation (MIDD) : Free Stock Analysis Report

iRobot Corporation (IRBT) : Free Stock Analysis Report

Zebra Technologies Corporation (ZBRA) : Free Stock Analysis Report

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