BTW is this you or your web page?
Here is the other comment alluded to.
iRobot Corp.
Comm’l Sales Disappoint,
Offset by Robust Defense
IRBT beats est by 4¢ on lower expenses, maladroit
comments with Street apt to contribute to sell-off
today: 2006 results were mixed results with sales of
$189MM $6MM+ lighter vs. our above guidance ests
and EPS of 14¢ beat our 10¢ est on 22¢ lower COGS
$119MM vs. 125MMe. Op expenses of $70MM in line
while other income of $3.8MM above our $2.6MM
clipped 5¢ of EPS. 2007 sales guidance $225-235MM,
+19-24% y/y, lower than our $258MMest but $23-33MM
variance can be made up for with a solid defense order.
Pretax EBIT guidance surprisingly lower than our
projections raises warning flags, which coupled with a
sparse earnings release providing little by way of insight
or explanation to pre-empt concerns atop active insider
selling points to enhanced negative sentiment and we
would expect the shares to sell off.
Slowing commercial but robust defense demand
long-term catalyst: Home robot dels grew 9% in ‘06 to
725K vs. 12% in ’05 (663K units) – well below our 875K
est. Clearly, our 2007 projections of 960K are far too
high, but we’ll await management explanation on the
call. Defense, as we long expected, continues to
outperform: 2006 Packbot dels of 385 bested our est by
60, +53% y/y vs. 252 in 2005. Gov’t & Industrial sales
handily bested our ests at $77MM vs. $57MMe, incl
$21MM in contract sales. We expect demand for
defense products to continue.
Implications: 2007 sales guidance is $25MM lower
than our thinking, possibly $50MM below consensus
expectations but EBIT story is a big question. Stock is
apt to sell off today and would be buyers at these levels. |
