Credit: Shutterstock photoiRobot CorporationIRBT reported better-than-expected results for fourth-quarter 2015. According to management, robust results were driven by strategic business investments.
Quarterly earnings came in at 65 cents per share, surpassing the Zacks Consensus Estimate of 55 cents by 18.2%. Moreover, the bottom line was significantly better than the year-ago tally of 31 cents.
Irobot Corporation (IRBT) Street Actual & Estimate EPS - Last 5 Quarters | FindTheCompany
For full-year 2015, earnings were $1.47 per share compared with $1.25 accrued in 2014.
Inside the Headlines
Revenues improved 29.5% year over year to $206.4 million and even outpaced the Zacks Consensus Estimate of $203 million.
iRobot's gross margin for the quarter was 46.2%, down 170 basis points (bps) year over year.
The company's fourth-quarter 2015 operating expenses increased 13.8% year over year to $72.3 million.
Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") for the quarter came in at $35 million compared with $19.7 million in the prior-year quarter.
For full-year 2015, revenues were $616.8 million compared with $556.8 million recorded a year ago.
Quarter in Detail
Home Robots segment generated revenues of $175.2 million, up 30.6% year over year. Gross margin decreased 300 bps year over year to 49.2%. Units shipped totaled 771,000, up from 571,000 shipped in the year-ago quarter.
Defense & Security revenues totaled $30.5 million compared with $24.1 million in the year-ago quarter. The segment's gross margin increased 330 bps year over year to 50.7%. Units shipped in the quarter fell 24.4% year over year to 102,000.
Balance Sheet and Cash Flow
Exiting the fourth quarter, iRobot had cash and cash equivalents of $179.9 million, down roughly 3.2% year over year. Long-term liabilities were $7.7 million, up from $3.7 million recorded at 2014-end.
At 2015-end, iRobot generated net cash of $26.7 million from operating activities as against $40.6 million of cash used in the year-ago comparable period. Capital expenditure was $9.4 million versus $13.8 million in the year-ago period.
Outlook
iRobot believes the spin-off of its Defense & Security segment would support its revenue growth in 2016. The company expects improved Home Robotics business, greater product diversification and tactical market strategies to support its top- and bottom-line growth in the upcoming quarters. Based on these factors, the company anticipates incurring a loss of 3-4 cents and revenues within $125-$135 million for first-quarter 2016. On the other hand, for full-year 2016, earnings are projected within $1.20-$1.40 per share and revenues in a band of $630-$642 million.
Stocks to Consider
iRobot currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Boyd Gaming Corporation BYD , International Speedway Corp. ISCA and MGM Resorts International MGM . All three stocks hold a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
