iRobot shares jump after posting revenue, EPS beat

iRobot reported quarterly earnings that beat expectations, with the company posting $545M in revenue and $.84 EPS, compared to consensus estimates of $484.6M and $.20 EPS. Yahoo Finance’s Jared Blikre joined Yahoo Finance Live to break down the other key metrics.

Video Transcript

ADAM SHAPIRO: What would life be without videos of cats riding Roombas? Let's get iRobot earnings. Let's go to Jared Blikre for that.

JARED BLIKRE: Adam, I don't want to live in that world. So let's get straight to the results. We got the stock hopping about 10%, 15%, in after-hours trading. You can see it right there-- currently at 9.9%.

But let's go through the numbers here because we got some nice beats. Adjusted EPS for the fourth quarter came in at $0.84-- quite a bit higher than the estimate of $0.20. Average gross selling price-- $327. That's up almost 2% year over year.

And I just checked out their website-- hadn't seen one of these guys in a while or hadn't been in the market. They have one with an $800 price point, so definitely adding the features but getting more expensive.

Revenue coming in at $545 million. That's up 28%, handily beating estimates of $484.6 million. And then their forecasts are seeing 2021 adjusted EPS at $3 to $3.25, vastly beating estimates of $2.19. And on the revenue front, full-year guidance coming in at $1.635 billion to $1.675 billion, much higher than the estimate of $1.47 billion.

Finally, some commentary from the earnings report. "As we continue to execute on our plans, we are excited about our prospects to sustain top-- solid top-line growth into 2022 and convert that expansion into 2022 profit margins and EPS that exceed 2020 levels."

Now, let's take a look at this chart here. This is a stock that got caught up in the whole GameStop-Reddit episode just a few weeks ago. And I think as a lot of these smaller, heavily shorted companies come out with their earnings, we're going to see a lot more pops like this-- a lot of prime candidates for some more Wall Street bets. Guys?