Shares of iRobot Corp. (IRBT) soared nearly 17 percent in extended session on Tuesday after the robotics technology company raised its full-year 2013 outlook as results for the first quarter topped analysts' expectations. The company also reported a profit that surged from last year, reflecting improved margins and revenue growth.
"We kicked off 2013 with an outstanding quarter. The results and outlook for our Home Robot business are excellent. We are very excited to have begun shipping our RP-VITA telemedicine robot in Q1 and our Defense & Security business delivered solid results," Chairman and CEO Colin Angle said in a statement.
The Bedford, Massachusetts-based robotic vacuum cleaner maker reported net income of $8.36 million or $0.29 per share for the first quarter, up from $653 thousand or $0.02 per share in the prior-year quarter.
Results for the latest quarter include a $0.08 benefit from investment tax credits.
On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.18 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew 8.6 percent to $106.20 million from $97.81 million in the same quarter last year, and topped five Wall Street analysts consensus estimate of $103.86 million.
In early March, the company had raised its earnings and sales outlook for the first quarter, citing impressive growth at its home robot and defense and security business units.
Product revenue for the quarter rose 10.5 percent to $101.41 million, while contract revenue dropped 21 percent to $4.79 million from the year-ago quarter.
Gross margin for the quarter improved 540 basis points to 43.8 percent from last year's 38.4 percent.
Looking ahead to the second quarter, iRobot expects earnings in a range of $0.15 to $0.20 per share, on projected revenues between $128 million to $133 million. Analysts currently expect the company to report earnings of $0.11 per share on quarterly revenues of $113.31 million.
For fiscal 2013, the company raised its earnings guidance to a range of $0.80 to $1.00 per share from its prior estimate of $0.57 to $0.72 per share. The company also now anticipates revenues in the range of $485 million to $495 million, up from its previous guidance between $480 million and $490 million.
Street is currently looking for full-year 2013 earnings of $0.79 per share on annual revenues of $485.28 million.
"Based on our view of the rest of the year, we are increasing our full-year financial expectations for both revenue and profit. The revenue increase is being driven by better than anticipated Home Robot demand in the United States," Angle added.
The company added that improvements in gross margin due to favorable product mix, successful integration of Evolution Robotics (ER) and tighter operating expense control will each contribute to increased profitability and enable it to deliver profitable growth.
IRBT closed Tuesday's regular trading session at $24.66, up $0.26 or 1.07% on a volume of 0.50 million shares. The stock gained a further $4.14 or 16.79% in after-hours trading.
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