What's In The Cards For IRobot (IRBT) This Earnings Season?

iRobot Corporation (NASDAQ:IRBT) is scheduled to report fourth-quarter 2017 results after the market closes on Feb 7.

iRobot delivered a positive average earnings surprise of 92.50%, over the preceding four quarters. Notably, its earnings in third-quarter fiscal 2017 came in at 60 cents, beating the Zacks Consensus Estimate of 44 cents.
What the Zacks Model Unveils?

Our proven model predicts that iRobot will likely report a positive surprise in the quarter under review, as it has the right combination of the two key ingredients.

Zacks ESP & Rank: iRobot has an Earnings ESP of +17.65% and also carries a favorable Zacks Rank #2 (Buy).

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

We only caution against stocks with a Zacks Ranks #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.

What’s Driving the Better-Than-Expected Earnings?

iRobot believes solid demand for popular home robotic products such as Roomba 800, Roomba 900 and Braava jet will bolster its revenues in the to-be-reported quarter. Moreover, the company’s marketing programs and launch of innovative products are anticipated to be conducive to revenue growth. Also, iRobot expects that the Robopolis acquisition (October 2017) will boost its European revenues in the quarters ahead. Notably, the company lifted its revenue guidance for 2017 from the $815-$825 million range to the $870-$880 million band (estimating a year-over-year increment of 33-34%).

The company also expects that improved top-line performance, discrete tax benefit and greater operational efficacy will widen its profitability.

Nonetheless, the company has revised its earnings view for 2017 to the $1.65-$2.00 per share range from the previous projection in the $1.80-$2.00 per share range.

Key Picks

Here are some stocks in the Zacks Categorized Industrial Products sector sector that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

Deere & Company (NYSE:DE) , with an Earnings ESP of +1.56% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Acco Brands Corporation (NYSE:ACCO) , with an Earnings ESP of +0.76% and a Zacks Rank #2.

Donaldson Company, Inc. (NYSE:DCI) , with an Earnings ESP of +3.45% and a Zacks Rank #3 (Hold).

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