Robotic technology-based solutions provider iRobot Corp. (IRBT) Tuesday predicted a loss for the fourth quarter and cut its full year forecast amid weakness in the defense and security business, after reporting third-quarter profit that grew modestly from last year. The stock plunged nearly 15 percent in the extended trade.
Net income rose to $15.21 million or $0.54 per share from $14.05 million or $0.50 per share in the prior-year quarter.
The positive net impact of items was $0.10 in earnings per share in the just concluded quarter, while last year's results included a one-time tax benefit of $0.12 per share. Adjusted earnings were $0.38 per share last year.
On average, five analysts polled by Thomson Reuters expected earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues were $126.30 million, up from $120.37 million last year. Analysts estimated revenues of $128.21 million for the quarter.
Home Robot revenue increased 33 percent owing to strong growth in U.S. and international markets. Defense and security, or D&S, revenue fell to $30 million in the quarter from $48.03 million last year.
The company said the 2012 outlook for D&S has deteriorated and further declines are expected in 2013.
''To right-size the business we have restructured D&S and taken costs out. These moves will result in a fourth quarter 2012 restructuring charge of $4-5 million,'' Colin Angle, CEO, said.
Operating expenses fell to $32.17 million from $34.46 million, as a result of lower expenses for Research & development as well as Selling & marketing.
Looking ahead to the fourth quarter, the company expects a loss per share of $0.33 to $0.39 and revenue of $98 - $102 million. Wall Street looks for earnings of $0.19 per share on revenues of $148.41 million.
According to the company, the quarterly results will be impacted by $0.28 to $0.32 per share due to the acquisition of Evolution Robotics and restructuring of D&S.
Further, the company slashed its full year outlook. Earnings per share are now expected to be $0.44 to $0.50, compared to the previous forecast of $0.90 to $1.00 per share.
Annual revenues are estimated in the range of $434 to $438 million while the previous forecast ranged from $465 million to $485 million.
Analysts expect full year earnings of $0.81 per share and revenues of $485.77 million.
The stock closed lower by 0.3 percent on Tuesday at $22.64, but declined 14.6 percent in the extended trade and was trading at $19.33.
For comments and feedback contact: editorial@rttnews.com
Business News
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.