IRBT - Embedded Expectations Analysis - 2018 11 06
iRobot Corporation (IRBT:USA) trades below corporate averages relative toUAFRS-based (Uniform) Earnings, with a 17.4x Uniform P/E. At these levels, markets have bearish expectations for the firm, and management is concerned about meeting their revenue and operating income targets, inventory levels, and pricing sensitivity
Specifically, management may lack confidence in their ability to meet increased FY 2018 revenue and operating income targets, and may be concerned about their higher inventory levels in Japan and EMEA countries. Moreover, they may lack confidence in their ability to avoid price sensitives as premium brand, and may be concerned about their Q3 G&A costs. Additionally, they may be exaggerating the value proposition of helping customers use Google Assistant to operate Roomba, and may be exaggerating the Roomba's ability to clean larger portions of a home
iRobot is a consumer robot company. The company's portfolio of solutions features technologies for the connected home and concepts in cleaning, mapping and navigation, human-robot interaction, and physical solutions. The company provides multiple Roomba floor vacuuming robots. The Braava robots automatically dust and damp mop hard-surface floors using cleaning cloths or the company's designed reusable microfiber cloths and include a reservoir that dispenses liquid throughout the cleaning cycle to keep the cloth damp. The robotic lawn mower, Terra t7 is being designed with a mapping and navigation system. Using the engaging Root Coding App, kids can learn coding fundamentals while they play, explore, and create.
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