What's Next For iRobot Stock?
Investors have a right to be perplexed by the market's reaction to the third-quarter earnings report from iRobot (NASDAQ: IRBT). There was certainly nothing wrong in the numbers and near-term guidance. revenue rose a whopping 43% in the quarter on a year-over-year basis, and management now expects year-over-year revenue to increase by 12% to 13%. Meanwhile, earnings per share (EPS) of $2.58 were ahead of estimates, as was the full-year 2020 guidance for EPS of $3.43 to $3.53.
So, with all this good news, why did the stock sell off by double digits?
As the subheading suggests, it's likely that the market was left unimpressed by management's commentary on 2021. Before getting into the details, it's worth noting that iRobot's management didn't give any detailed color on the outlook for 2021 or 2022. As such, the market's dismal reaction is more about the commentary than any specific guidance.
Source Fool.com
