iRobot Stock Slides Despite Strong Earnings. Blame Rising Costs.

SourceCNBC
SectorFinancial Markets
CountryMiddle east

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The maker of Roomba vacuum cleaners,

iRobot,

posted better-than-expected results for the first quarter, but the company’s stock was headed lower late Monday, perhaps because of concerns about rising costs related to higher costs for components and shipping.

For the quarter, iRobot (ticker: IRBT) posted revenue of $303.3 million, up 58% from a year ago, and well above the Wall Street consensus of $264.1 million. Adjusted profits of 41 cents a share were more than quadruple the Street consensus estimate of 9 cents. Under generally accepted accounting principles, the company earned 26 cents a share.

The top-line growth “reflected robust expansion in each major geographic region with stronger-than-expected demand from the company’s distribution partners in [Europe, Middle East and Africa] and vibrant retail orders in North America,” the company said.

The figure included certain orders that were previously anticipated for the...read more...