The maker of Roomba vacuum cleaners, iRobot, posted better-than-expected results for the first quarter, but the company’s stock was headed lower late Monday, perhaps because of concerns about rising costs related to higher costs for components and shipping.
For the quarter, iRobot (ticker: IRBT) posted revenue of $303.3 million, up 58% from a year ago, and well above the Wall Street consensus of $264.1 million. Adjusted profits of 41 cents a share were more than quadruple the Street consensus estimate of 9 cents. Under generally accepted accounting principles, the company earned 26 cents a share.
The top-line growth “reflected robust expansion in each major geographic region with stronger-than-expected demand from the company’s distribution partners in [Europe, Middle East and Africa] and vibrant retail orders in North America,” the company said. The figure included certain orders that were previously anticipated for the second quarter.
“Our first-quarter results demonstrate that we are off to a very good start to 2021,” iRobot CEO Colin Angle said in a statement. “Consumer demand for our products has remained resilient and our value proposition to provide customers with a highly differentiated, personalized cleaning experience has continued to resonate around the world.”
For the full year ended January 1, 2022, the company sees revenue ranging from $1.67 billion to $1.71 billion, up from a previous forecast range of $1.635 billion to $1.675 billion, but the company is keeping its full-year profit forecast steady at $3 to $3.25 a share.
“We have increased our expectations for 2021 revenue to reflect our first-quarter performance and solid growth prospects over the coming quarters,” Angle said. “At the same time, we have reaffirmed our 2021 operating income and EPS as we plan to carefully manage our spending to offset higher-than-expected costs arising from the tighter availability of semiconductor chips as well as rising raw material, freight and transportation costs.”
In late trading, iRobot shares were down 9.2%, to $94.35. The stock was down 4.4% in Monday’s regular session.
Write to Eric J. Savitz at [email protected]