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iRobot Stock Shares Skyrocket on Earnings

Published 07/27/2017, 01:32 AM
Updated 03/09/2019, 08:30 AM
IRBT
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iRobot Corporation

iRobot Corporation (NASDAQ:IRBT), a global software and hardware solutions yesterday reported their preliminary second quarter 2017 financial results along with second quarter profits of $7.9 million.

iRobot reported second quarter earnings of $0.27 per share which beat analyst expectations of a loss of $0.25 per share with revenues of $183.1 million.

IRBT expects full year earnings to be in between $1.80 and $2 per share and expects full year revenues to be in between $815 to $825 million.

iRobot Corporation CEO’s Comments

“Our outstanding second-quarter results exceeded our expectations. Based on our Q2 results, and our outlook for the rest of 2017, fueled by positive momentum in the United States and EMEA, we are increasing our full-year 2017 financial expectations. We now expect 2017 revenue of $815 to $825 million, a 24 – 26% increase over 2016 consumer revenue, operating income of between $67 and $75 million, and EPS of between $1.80 and $2.00, none of which reflects any impact of our announced acquisition of our largest European distributor,” said Colin Angle, chairman and chief executive officer of iRobot.

IRBT Technical Analysis

IRBT 15-Min Chart

IRBT opened trading yesterday at $90.70 which was up from the previous day’s trading close of $90.38. IRBT closed trading yesterday at $87.90 and spiked up after market to $106.50, equivalent to a 21% increase from the closing price. Taking a look at the daily chart we can see that we are in unchartered territory as with the spike up IRBT is now trading at all time highs .

Taking a closer look at the daily chart we can see that before the spike up IRBT had been in an overall downward trend dating back to June 26th when it traded at $100.98. IRBT has a float of 26.66 million shares and traded 2.66 times the normal daily trading volume on Tuesday. This is higher priced than most penny stocks I trade but there will be plenty of opportunity to take advantage of on this one.

For trading purposes, I would like to see IRBT open trading on Wednesday above $100 and if it does I would be looking to take a long position at the bell. My stop loss would be $1.00 from my entry position fearing anything more than that and the stock would start to fill in the gap up.

Company Profile

iRobot Corporation, incorporated on December 20, 2000, is a consumer robot company, which is engaged in designing and building robots. The Company’s portfolio of solutions features various technologies for the connected home and various concepts in mapping, navigation, mobility and artificial intelligence.

The Company sells various products that are designed for use at home. Its consumer products focus on both indoor and outdoor cleaning applications. The Company offers multiple Roomba floor vacuuming robots. Roomba’s design allows it to clean under kick boards, beds and other furniture.

The Company offers the Braava family of automatic floor mopping robots designed for hard surface floors. The Company’s trademarks include iRobot, Roomba, Scooba, ViPR, NorthStar, Create, iAdapt, Aware, Home Base, Looj, Braava, AeroForce, Mirra, vSLAM and Virtual Wall.

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