Headquartered in Bedford, MA, iRobot Corporation (IRBT – Free Report) is a leading global consumer robot company. They also have offices in Europe and Asia.

Their product line includes the Roomba vacuuming robot and the Braava family of mopping robots. These robots help in domestic chores like vacuum cleaning, floor scrubbing, floor mopping, pool cleaning and gutter cleaning.

Company History

The company was founded in 1990 by MIT roboticists. For the past more than 25 years, it has been a global pioneer in the robotics and consumer products and has sold more than 20 million robots worldwide.

Excellent Results, Raised Guidance

The robot maker reported excellent results for Q2 2018, beating on both the top and bottom lines.

Adjusted earnings rose to 37 cents per share from 27 cents in the same quarter a year ago and beat the Zacks Consensus Estimate by a massive 117.6%.

The management raised the revenue guidance for 2018 to $1.06-$1.08 billion from the previous expectation of $1.05-$1.08 billion and they now expect earnings to be between $2.30-$2.50 per share, higher than earlier guidance of $2.15-$2.40 per share.

The stock surged almost 20% in the after-hours trading.

Rising Estimates

Analysts have been raising estimates for the company after better than expected results and guidance. Zacks Consensus Estimates for the current and next year have increased to $1.64 per share and $2.44 per share from $1.53 and $2.29, before the results.

The company has a pretty good record of beating estimates, as we can see from the following price and EPS surprise chart.

iRobot Corporation Price, Consensus and EPS Surprise

 Market Leadership in a Growing Industry

According to the company, robotic vacuum cleaner segment in the global vacuum cleaner market is about 23% now and the segment growth is expected to significantly outpace overall market growth.

iRobot Roomba continues to hold 60+% market share despite rising competition.

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