For Immediate Release
Chicago, IL – June 08, 2017 –Zacks Equity Research iRobot Corporation (NASDAQ: IRBT – Free Report ) as the Bull of the Day, Michael Kors Holdings (NYSE: KORS – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Pandora (NYSE: P – Free Report ), Sirius XM (NASDAQ: SIRI – Free Report ) and Apple (NASDAQ: AAPL – Free Report ).
Here is a synopsis of all five stocks:
Founded in 1990 by MIT roboticists, iRobot Corporation (NASDAQ:IRBT – Free Report ) is headquartered in Bedford, Mass. They also have offices in California, UK, China, Hong Kong and Japan.
The company is a leader in consumer home robotics, including the Roomba Vacuuming Robot and the Braava family of mopping robots.
Excellent Results, Raised Guidance
The robot maker reported excellent results for Q1 2017. Adjusted earnings were $0.52 per share, beating the Zacks Consensus Estimate of $0.26.
Revenues came in at $168.5 million, also ahead of the estimates and up 28.8% year over year.
"Our first quarter results were outstanding. Building off the strong momentum we experienced during the year-end holidays, iRobot delivered first quarter 2017 consumer revenue growth of 32% due to growth across all regions," said the CEO.
After strong results and bullish outlook for the rest of 2017, the management increased their FY 2017 guidance. They now expect 2017 revenue of $780 to $790 million and EPS of between $1.45 and $1.70.
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 Bottom Line
The company is a leader in robotic vacuum market globally. With rising awareness about these smart appliances and continuous innovations, they are able to maintain their market share despite rising competition.
iRobot is also a rising player in the Internet of Things/Smart Home market. The sale of their connected devices is expected to rise significantly in the coming years.
In addition to a top Zacks rank, the stock has a style score of “A” for momentum as well as growth. It has an expected EPS growth rate of 22%.
Michael Kors Holdings (NYSE:KORS – Free Report ) is a global luxury lifestyle company, founded by designer Michael Kors in 1981. They produce a range of products including handbags, watches, accessories, jewelry and fragrance products and footwear under Michael Kors Collection, MICHAEL Michael Kors and Michael Kors Mens.
Michael Kors stores are operated, either directly or through licensing partners. As of April 1, 2017, the company operated 827 retail stores, and 133 additional retail stores operated through licensing partners.
Weak Guidance Reflects Rising Challenges
The luxury lifestyle retailer reported fiscal fourth quarter 2017 ended April 1 earnings of $1.64 per share, beating the Zacks Consensus Estimate of $1.62 and up 3.1% year over year.
Total revenues were slightly below the Zacks Consensus Estimate and down 3.2% year over year. Comparable-store sales plunged 14.1%, worse than the street estimate of 13.4%.
“Fiscal 2017 was a challenging year, as we continued to operate in a difficult retail environment with elevated promotional levels. In addition, our product and store experience did not sufficiently engage and excite consumers,” said the CEO.
For fiscal 2018, the company expects total revenue to be approximately $4.25 billion and for comparable sales to decrease in the high-single digit range. EPS is expected to be in the range of $3.57 - $3.67, significantly short of the street estimates and their earlier guidance.
With quarterly results, the retailer also announced that they would close 100 to 125 full-priced retail stores over the next two years.
Falling Estimates
Analysts have slashed their estimates for the company after weak guidance. Zacks Consensus Estimates for the current and next fiscal year have fallen to $3.55 per share and $3.65 per share from $3.94 and $3.79 respectively, before the report.
Falling estimates sent the stock to a Zacks Rank #5 (Strong Sell).
Additional content:
Here’s Why Pandora (P) Tanked on Wednesday
Shares of Pandora (NYSE:P – Free Report ) fell 6.97% in Wednesday afternoon trading as the streaming music service company’s timeline to sell nears its closing date.
Thursday marks a self-imposed deadline for the struggling company to sell its business within a 30-day window, which, based on reports last month, it was confident it could do.
On May 8, private equity firm KKR struck a $150 million investment deal with Pandora, which is set to close on June 8. In return, KKR received a board seat. However, according to a CNBC report , if Pandora is able to sell itself within the 30-day deadline, it will have to pay KKR $15 million, which the company viewed as an insurance-like policy.
Pandora reportedly saw the large KKR investment improving the likelihood it could sell itself. “Having secured a significant financial commitment from KKR to strengthen the Company’s balance sheet, we have positioned the Company to evaluate any potential strategic alternatives, including a sale, in the 30 days before the financing is set to close,” James M. P. Feuille, a Pandora board member who resigned as part of the deal, said in a statement last month.
“I believe the steps we are taking today offer Pandora the ability to consider all opportunities and to set a course for the future.”
Sirius XM (NASDAQ:SIRI – Free Report ) and its majority owner Liberty Media (NASDAQ:FWONA) have been interested in a deal to acquire the struggling online music service since last summer, when Pandora rejected a July takeover offer . Since then, the two sides have seemed unable to reach a price point for a buyout.
The New York Post first reported that Verizon (VZ) could also potentially invest $100 million in Pandora preferred stock if the company fails to sell by June 8.
Investors seem to be worried that even with strong incentive to try to sell, Pandora could not find a suitor as shares closed down almost 8% yesterday. Pandora’s stock price had fallen 17% in the past month , and it is currently trading near its 52-week low and only $1 above its all-time low.
Apple’s (NASDAQ:AAPL – Free Report ) Apple Music and Spotify’s continued growth has hurt Pandora’s premium ad-free service. On top of that, its original advertising-based personalized streaming music service continually fails to expand its user base .
3 Stocks to Ride a 588% Revenue Explosion
At Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold...
By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on IRBT - FREE
Get the full Report on KORS - FREE
Get the full Report on P - FREE
Get the full Report on SIRI - FREE
Get the full Report on AAPL - FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook (NASDAQ:FB): https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer .
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
iRobot Corporation (IRBT): Free Stock Analysis Report
Michael Kors Holdings Limited (NYSE:KORS): Free Stock Analysis Report
Pandora Media, Inc. (P): Free Stock Analysis Report
Sirius XM Holdings Inc. (SIRI): Free Stock Analysis Report
Apple Inc. (NASDAQ:AAPL): Free Stock Analysis Report
Original post
Zacks Investment Research