Notable new automatons
So how does iRobot plan to keep up the pace?
First up, as expected, domestic Home Robot revenue growth of 44% helped drive a 14% year-over-year gain in overall quarterly Home Robot revenue, while International Home Robot revenue still made up around two-thirds of iRobot’s total consumer sales. Of course, the consumer segment has remained iRobot’s saving grace through the past years’ difficulty, so it’s no surprise the performance here remained strong.
iRobot Roomba 760. Source: iRobot.
On that note, it also appears that iRobot is finally done integrating its acquisition of Evolution Robotics, which closed last October and has since remained a drag on earnings. Sure enough, iRobot says it has officially launched its new Braava robot, an iRobot-branded version of Evolution Robotics’ old Mint floor-sweeping bots.
In addition, while iRobot’s first-quarter revenue was unexpectedly boosted by the timing of Defense Department orders for spare unmanned ground vehicle parts, last month’s unexpected $14.4 million contract for iRobot’s awesome throwable FirstLook bots gave the company some much-needed confidence to know it can exceed its goals in the Defense and Security segment going forward.
iRobot FirstLook throwable robot. Image Source: iRobot.
Finally, as management noted in February, iRobot also began shipping its RP-VITA remote telepresence robots to partner InTouch Health during the quarter, where the tablet-powered automatons were outfitted with InTouch’s specialized medical equipment. Apparently, however, medical professionals also haven’t wasted any time pushing the robots into the fray, with around one dozen of them already being used in hospitals.
With that in mind, as I wrote back in January when RP-VITA first received the go-ahead from the FDA, investors should be careful not to expect a significant positive impact on iRobot’s earnings from the new robot — at least for now, anyway. Even so, it’s encouraging to know things seem to be moving along nicely for the platform, and you can be sure I’ll keep close tabs to see what medical professionals think after spending some time with the technology.
Foolish final thoughts
While I fully expect more volatility while holding shares of iRobot in the future, this is yet another long-term play for me and I’m convinced this solidly profitable company will reward investors’ patience over time.
At risk of sounding like a broken record, then, and even as the stock trades near 40 times trailing earnings, I’m reiterating my stance that shares of iRobot have plenty of upside left even after today’s pop.
The article iRobot Doesn’t Know Its Own Strength: Is That a Good Thing? originally appeared on Fool.com.
Fool contributor Steve Symington owns shares of iRobot. The Motley Fool recommends iRobot.
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