Back to main

iRobot Hits 52-Week High on Patent Portfolio - Analyst Blog

Posted
2/12/2014 9:17:00 AM
By: Zacks.com
Referenced Stocks:AIMC;B;IRBT;MIDD

Shares of iRobot Corporation ( IRBT ) touched a new 52-week high of $44.35 during the trading session on Feb 11. This is an increase over the previous high of $41.12 reached on Jul 1, 2013.  

Shares of iRobot Corporation closed at its all-time high of $41.99 at the end of trading on Feb 11, with a solid year-to-date return of 102.1%. The volume of shares traded during that session was 3.8 million. Further upside potential exists for this robotic technology-based solutions provider, as reflected by the estimated earnings growth rates for 2014 and 2015.

Growth Drivers

iRobot Corporation's share price gain of 11% yesterday was the outcome of the recognition that the company's patent portfolio got from the Patent Board.

Among 50 leaders presiding in the electronics and instruments industry, iRobot Corporation's patent portfolio was ranked #5 in the overall category. In the Science Strength category, the company received a #2 rank, while it was ranked #3 in the Industry Impact category.

These ranks truly reflect iRobot Corporation's contributions to the robotic and technology industry. The company, currently, has roughly 238 patents in its name in the U.S. and more than 400 worldwide.

Besides the strong patent portfolio, the recently reported fourth-quarter and 2013 results reflect the company's financial strength. A quick snapshot of 2013 results has been provided below.

iRobot Corporation reported earnings per share of 94 cents in 2013, way above the 61 cents recorded in 2012. Revenues generated were $487.4 million, up 11.7% year over year. The top-line result was driven by a 19.9% increase in revenue of Home Robots segment, offset partially by a 29.5% fall in Defense & Security segment revenue. Units shipped increased by 19.2% for Home Robots segment and by 94.9% for Defense & Security segment.

Strong patent portfolio and impressive financial results for 2013 along with a positive average earnings surprise of +12.3% make us optimistic about better results in the year ahead. We have an Earnings ESP of +3.7% for 2014 and +4.4% for 2015.

The Zacks Consensus Estimate for iRobot Corporation is at $1.09 for 2014 and $1.35 for 2015, reflecting year-over-year growth rates of 25.7% and 23.0%, respectively.

Other Stocks to Consider

iRobot Corporation currently has a market capitalization of $1.21 billion and carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include Altra Industrial Motion Corp. ( AIMC ), Barnes Group Inc. ( B ) and The Middleby Corp. ( MIDD ). All these companies carry a Zacks Rank #2 (Buy).



ALTRA HOLDINGS (AIMC): Free Stock Analysis Report

BARNES GRP (B): Free Stock Analysis Report

IROBOT CORP (IRBT): Free Stock Analysis Report

MIDDLEBY CORP (MIDD): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research