IRBT - Embedded Expectations Analysis - 2020 07 27
iRobot Corporation (IRBT:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings with a 26.9x Uniform P/E. Even at these levels, the market has bearish expectations for the firm, and management may be concerned about sell-through growth, costs, and retailer headwindsSpecifically, management may lack confidence in the potential of cost-reduction actions undertaken to reprioritize resources. Management may also lack confidence in their ability to sustain their sell-through growth in the U.S. and EMEA and support manufacturing in Malaysia, and might have concerns about inventory and expectations for DSO increases. In addition, they may have concerns about their continuing costs for Terra, and the headwinds in the retailer environment. They may also be concerned about their visibility into future quarters and ability to provide guidance
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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