iRobot Corporation IRBT recently reported fourth-quarter 2024 preliminary financial results. The company’s shares plunged 21.7% yesterday to close the trading session at $8.18, as its preliminary results fell short of the guidance.

Based on its preliminary results, iRobot is expected to generate revenues of approximately $171 million in the fourth quarter. It anticipates reporting a GAAP operating loss of approximately $59 million while non-GAAP operating loss is projected to be about $47 million.

Previously, iRobot had anticipated fourth-quarter revenues to be in the range of $175–$200 million. It had earlier expected GAAP operating loss to be in the band of $34–$43 million and non-GAAP operating loss to be in the range of $22–$31 million. Exiting 2024, its cash and cash equivalents are expected to be $134 million.

As noted, the company’s preliminary results reflect higher-than-expected seasonal promotional expenditures and an incremental non-recurring charge of $8 million. These had an adverse impact on its gross margin and operating loss performance.

For 2025, iRobot currently anticipates reporting top-line growth on a year-over-year basis, backed by its introduction of new products. It is anticipated to witness a stronger second half of 2025 compared with the first half as it expands its product lineup. For 2025, IRBT expects to generate improved margins and profitability, supported by lower product costs and reduced development timelines.

IRBT Stock’s Zacks Rank & Price Performance

iRobot, with an approximately $250 million market capitalization, currently carries a Zacks Rank #3 (Hold).

The company is set to gain from its diversified product portfolio, innovation capabilities and operational initiatives. Investments in higher-value robotics, machine learning and complex mechanical design are likely to be beneficial for it. However, the soft demand environment for solo and other products, along with unfavorable pricing adjustments, has been hurting iRobot’s top line. Cost headwinds are weighing on its operating margin performance.

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In the past three months, the company’s shares have inched up 0.1% compared with the industry’s 27.9% growth.

Key Picks

Some better-ranked companies are discussed below.

Graham Corporation GHM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

GHM delivered a trailing four-quarter average earnings surprise of 101.9%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 (ending March 2025) earnings has been stable.

Applied Industrial Technologies AIT presently carries a Zacks Rank #2 (Buy). AIT delivered a trailing four-quarter average earnings surprise of 4.8%.

In the past 60 days, the consensus estimate for its fiscal 2025 earnings has increased 0.2%.

Generac Holdings GNRC presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 10.8%.

In the past 60 days, the consensus estimate for GNRC’s 2024 earnings has increased 1.6%.

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Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report

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