) reported fourth-quarter 2013 results, showing year-over-year
improvement in both earnings and revenues. The company posted
earnings of 11 cents a share which compared favorably with a loss
of 21 cents in the year-ago quarter. Earnings for the reported
quarter were in line with the Zacks Consensus Estimate.
For 2013, iRobot reported earnings per share of 94 cents,
missing the Zacks Consensus Estimate of 95 cents. Reported
earnings were, however, above the year-ago figure of 61 cents per
: Revenues for the reported quarter improved roughly 25.5% year
over year to $126.3 million and were roughly in line with the
Zacks Consensus Estimate of $126.0 million. The increase in
revenues was a result of improved demand in the Home Robots
During the quarter, product revenues of $125.4 million
accounted for 99.3% of the total revenue, while the remaining
0.7% was contributed by services revenues which came in at
For 2013, iRobot reported revenues of $487.4 million, roughly
flat with the Zacks Consensus Estimate of $488.0 million.
Revenues were, however, higher than $436.2 million generated in
Gross margin in the reported quarter was 46.6%, up 244 basis
points (bps) compared with 44.2% in the year-ago quarter.
Operating expenses increased 1.6% year over year in the quarter
to $54.2 million. Adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA) in the quarter were
recorded at $12.8 million compared with $981.0 million in the
segment generated revenues of $108.3 million in the quarter, up
30.6% year over year. The sales increase was a result of
improvement in domestic as well as overseas markets. The
segment's gross margin declined 160 bps year over year to 49.6%.
In the quarter, iRobot shipped 494 units of Home Robots, compared
with 387 units shipped in the fourth quarter of 2012.
Defense & Security
segment's revenues were recorded at $16.3 million compared with
$15.7 million in the year-ago quarter. The year-over-year sales
hike of 3.9% was in line with the company expectations. The
segment's gross margin reached 59.4% compared with 45.3% in the
Balance Sheet/Cash Flow:
Exiting the fourth quarter of 2013, iRobot's cash and cash
equivalents were recorded at $165.4 million, compared with $139.7
million in the preceding quarter. iRobot had long-term debt of
$4.7 million, up from $4.5 million in the quarter ended Sep 30,
In the reported quarter, iRobot generated cash flow from
operations of $31.3 million, against $26.6 million generated in
the year-ago comparable quarter. In the quarter, capital
expenditure was recorded at $1.7 million against $2.7 million in
the quarter ended Dec 2012.
Management expects the products launched in and after the
reported quarter to derive a significant market share in the
coming quarters. Home Robots segment is expected to continue
generating higher revenues. In the first-quarter 2014, revenues
are expected in the range of $110.0 to $113.0 million, with
earnings per share in the 13 cents to 17 cents range. Adjusted
EBITDA in the quarter is expected in the range of $13 to $15
iRobot expects revenues in 2014 to be within $560.0 to $570.0
million. Adjusted EBITDA is estimated in the range of $74.0 to
$78.0 million, with earnings per share in the range of $1.00 to
In 2014, Home Robots segment is expected to generate revenues
in the range of $500.0 to $515.0 million while Defense &
Security segment's revenues are expected to be $50.0 million.
Other Stocks to Consider
iRobot currently carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the industry include
Altra Industrial Motion Corp.
Barnes Group Inc.
The Middleby Corporation
). All these stocks carry a Zacks Rank #2 (Buy).
ALTRA HOLDINGS (AIMC): Free Stock Analysis
BARNES GRP (B): Free Stock Analysis Report
IROBOT CORP (IRBT): Free Stock Analysis
MIDDLEBY CORP (MIDD): Free Stock Analysis
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