=iRobot (IRBT) reported earnings on Tue 22 Oct 2019 (a/h)

iRobot beats by $0.70, beats on revs; guides FY19 EPS above consensus, revs in-line

Reports Q3 (Sep) GAAP earnings of $1.24 per share, $0.70 better than the S&P Capital IQ Consensus of $0.54; revenues rose 9.4% year/year to $289.4 mln vs the $259.31 mln S&P Capital IQ Consensus.

• Q3 revenue grew 25% internationally, highlighted by 27% growth in EMEA and 40% growth in Japan, more than offsetting a 7% decline in the U.S.

Co narrows guidance for FY19, sees GAAP EPS of $2.60-2.80 vs. $2.57 S&P Capital IQ Consensus; sees FY19 revs of $1.2-1.21 bln vs. $1.2 bln S&P Capital IQ Consensus.

• Prior Guidance for EPS of $2.40-3.15 on revs of $1.2-1.25 bln

The Terra t7 robot mower beta trial in Germany is nearing completion, with U.S. beta trial now underway.

Co comments, "Despite the severity of U.S. tariffs on robotic vacuum cleaners, and the direct and indirect disruptions they are having on U.S. category growth, we remain committed to delivering exceptional value to consumers and are mobilizing accordingly. Although our third-quarter results were strong, sell-through following our late July price increases was suboptimal. Given this outcome and our belief that the RVC category was at a growth inflection point prior to tariffs, we elected to roll back our pricing to pre-tariff levels on most of our products. We believe this action, in combination with robust investment in R&D and our go-to-market activities, will help us defend our category leadership."