) is scheduled to release second-quarter 2014 results on Jul 22
after the market closes. The company had delivered a positive
earnings surprise of 12.5% in the preceding quarter. Let's see how
things are shaping up prior to this announcement.
Factors to Consider
Strong demand in the Home Robots segment has been aiding
iRobot's growth momentum in the past. The company continues to
launch various products in order to gain higher market share.
iRobot unveiled its floor cleaning robot, Scooba 450 last January
and prior to that, Roomba 880 in Nov 2013. Both products,
meeting with immense success, are expected to augment revenues in
The company has also been gaining on its international
operations, which are expected to grow in the coming quarters.
Moreover, iRobot has been making efforts to increase shareholders'
values. In April this year, the company announced a stock
repurchase plan of $50 million, which spans from May 1, 2014 to Apr
Our proven model does not conclusively show that iRobot is
likely to beat earnings this quarter. That is because a stock needs
to have both a positive
and a Zacks Rank of #1, #2 or #3 for this to happen. That is not
the case here as we will see below.
Earnings ESP, which represents the difference between the Most
Accurate estimate and the Zacks Consensus Estimate, is currently
pegged at 0.00%. This indicates in-line earnings for the stock.
iRobot's Zacks Rank #3 (Hold), when combined with a 0.00% ESP makes
surprise predictions difficult. We caution against stocks with
Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings
announcement, especially when the company is seeing a negative
estimate revision momentum.
Other Stocks to Consider
Here are some companies in the industry that investors may want
to consider as our model shows that they have the right combination
of elements to post an earnings beat this quarter:
), Earnings ESP of +3.33% and a Zacks Rank #2 (Buy).
Lincoln Electric Holdings Inc.
), Earnings ESP of +1.10% and a Zacks Rank #3.
), Earnings ESP of +1.12% and a Zacks Rank #3.
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