Battered iRobot stock takes another hit
Although iRobot reported that its 3rd quarter profits rose 8% and the company saw revenue growth within its consumer products, the stocks dropped 19% as it warned that it’s revenue outlook had deteriorated 5% further than previously reported.
Also announced was the closing of the Durham, NC facility – its maritime operation where iRobot produced its Seaglider robot – a military research project – and the layoff of all its 80 employees at that facility.
iRobot has been on a year-long plan to shore up its military products and research group, grow its consumer products (which included the acquisition of competitor Evolution Robotics) and diversify into new B2B (business-to-business) markets (eg, the product launch with partner InTouch Health), and the use of their AVA platform robot for other vertical markets.
iRobot suffered a 33% drop in its stock in February and then another 6% in late April. iRobot stock is down 39% year-to-date at its current $18.32 per share price.