BEDFORD, Mass. - iRobot Corp . (NASDAQ:IRBT) reported third-quarter results that beat earnings expectations but fell short on revenue, sending shares down over 10% in premarket trading Wednesday.
The consumer robotics company posted adjusted earnings per share of $0.03, better than the analyst estimates of a $0.06 loss per share. However, revenue came in at $193.4 million, missing the consensus forecast of $218.41 million.
iRobot's revenue increased 3.9% year-over-year but fell well short of expectations, indicating ongoing challenges in the consumer robotics market. The company cited "persistent market segment and competitive headwinds" that impacted sell-through performance.
"Although we now expect it will take more time to stabilize our revenue trend, we are on track to exceed our operating expense targets for the year, while at the same time continuing to invest in areas that are expected to drive growth," said Gary Cohen, iRobot's CEO.
The company expanded its non-GAAP gross margin by 590 basis points year-over-year to 32.4%. Operating expenses declined significantly, falling to $47.7 million on a non-GAAP basis compared to $90.1 million in the year-ago quarter.
iRobot revised its full-year 2024 outlook, now expecting revenue between $685 million and $710 million, down from its previous guidance of $825 million to $865 million. The company anticipates a non-GAAP net loss per share between $4.60 and $4.91 for the full year.
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