iRobot Stock Down on Weaker-Than-Expected Q4 Preliminary Results

iRobot Corporation IRBT recently reported fourth-quarter 2024 preliminary financial results. The company’s shares plunged 21.7% yesterday to close the trading session at $8.18, as its preliminary results fell short of the guidance.Based on its preliminary results, iRobot is expected to generate revenues of approximately $171 million in the fourth quarter. It anticipates reporting a GAAP operating loss of approximately $59 million while non-GAAP operating loss is projected to be about $47 million.Previously, iRobot had anticipated fourth-quarter revenues to be in the range of $175–$200 million. It had earlier expected GAAP operating loss to be in the band of $34–$43 million and non-GAAP operating loss to be in the range of $22–$31 million. Exiting 2024, its cash and cash equivalents are expected to be $134 million.As noted, the company’s preliminary results reflect higher-than-expected seasonal promotional expenditures and an incremental non-recurring charge of $8 million. These had an adverse impact on its gross margin and operating loss performance.For 2025, iRobot currently anticipates reporting top-line growth on a year-over-year basis, backed by its introduction of new products. It is anticipated to witness a stronger second half of 2025 compared with the first half as it expands its product lineup. For 2025, IRBT expects to generate improved margins and profitability, supported by lower product costs and reduced development timelines.IRBT Stock’s Zacks Rank & Price PerformanceiRobot, with an approximately $250 million market capitalization, currently carries a Zacks Rank #3 (Hold).The company is set to gain from its diversified product portfolio, innovation capabilities and operational initiatives. Investments in higher-value robotics, machine learning and complex mechanical design are likely to be beneficial for it. However, the soft demand environment for solo and other products, along with unfavorable pricing adjustments, has been hurting iRobot’s top line. Cost headwinds are weighing on its operating margin performance.Image Source: Zacks Investment ResearchIn the past three months, the company’s shares have inched up 0.1% compared with the industry’s 27.9% growth.Key PicksSome better-ranked companies are discussed below.Graham Corporation GHM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.GHM delivered a trailing four-quarter average earnings surprise of 101.9%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 (ending March 2025) earnings has been stable.Applied Industrial Technologies AIT presently carries a Zacks Rank #2 (Buy). AIT delivered a trailing four-quarter average earnings surprise of 4.8%.In the past 60 days, the consensus estimate for its fiscal 2025 earnings has increased 0.2%.Generac Holdings GNRC presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 10.8%.In the past 60 days, the consensus estimate for GNRC’s 2024 earnings has increased 1.6%.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report iRobot Corporation (IRBT): Free Stock Analysis Report Graham Corporation (GHM): Free Stock Analysis Report Generac Holdings Inc. (GNRC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks