iRobot (IRBT) Q3 Earnings: What's in Store for the Stock?

iRobot CorporationIRBT is scheduled to report its third-quarter 2016 figures after the opening bell on Oct 25, 2016.

Let's see how things are shaping up prior to this announcement.

Existing Scenario

iRobot believes that the robust momentum of its U.S. business and strategic marketing programs would fuel top- and bottom-line growth in the quarter to be reported. Notably, rise in demand of the premium home robotics' mopping product - Braava jet - would boost aggregate sales in the quarter. The product is currently available in the niche Asian markets, such as China and Japan, where the end-users are highly enthusiastic to buy smart home automation robotic products.

Also, increased consumer adoption of the company's robot - Roomba - is expected to supplement the company's Asian market sales in the quarter. iRobot anticipates generating revenues within the range of $155-$160 million in this quarter, an approximate 14-17% increment from the year-ago tally. Meanwhile, adjusted earnings are projected to lie within the range of 40-45 cents per share.

iRobot is poised to grow on the back of meaningful innovations, strategic marketing programs and diligent restructuring initiatives. However, certain headwinds, such as fall in customers' brand loyalty, emergence of an unfavorable political outcome in the market or sluggish global economic growth might be serious setbacks.

Earnings Whispers

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 Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as we will see below.

Zacks ESP: iRobot currently has an Earnings ESP of 0.00%. This is because both the Zacks Consensus Estimate and the Most Accurate estimate stand at 42 cents.

IROBOT CORP Price and EPS Surprise

IROBOT CORP Price and EPS Surprise | IROBOT CORP Quote

Zacks Rank: iRobot carries a Zacks Rank #3. However, a 0.00% ESP makes surprise prediction difficult.

Note that we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some stocks that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

NN Inc. NNBR , with an Earnings ESP of +4.35% and a Zacks Rank #1.

Casella Waste Systems Inc. CWST , with an Earnings ESP of +60.00% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .

Owens-Illinois, Inc. OI , with an Earnings ESP of +3.03% and a Zacks Rank #2.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

OWENS-ILLINOIS (OI): Free Stock Analysis Report

IROBOT CORP (IRBT): Free Stock Analysis Report

NN INC (NNBR): Free Stock Analysis Report

CASELLA WASTE (CWST): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

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.

In This Story


Other Topics

Earnings Stocks

Latest Markets Videos


Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

Learn More