Why iRobot Shares Soared 49% in April
Shares in iRobot (NASDAQ: IRBT) soared by an astonishing 49.1% in April according to data provided by S&P Global Market Intelligence. The only noteworthy news was the fact that on April 24, the company's "request for an exclusion for its Roomba robot vacuums from Section 301 tariffs was granted by the United States Trade Representative," according to the company's earnings release. Moreover, iRobot will be able to obtain a refund for tariffs paid since September 2018.
iRobot is hoping demand for robotic vacuum cleaners will recover in 2020. Image source: Getty Images.
During the earnings call, CFO Alison Dean outlined that second-quarter "gross profit will benefit from $6.6 million for tariffs paid in Q1 2020 plus the elimination of tariffs for the quarter itself." For reference, iRobot's gross profit in the first quarter was around $78 million.
Source Fool.com
