iRobot to Repurchase $50M Shares - Analyst Blog

The board at iRobot Corporation IRBT sanctioned a stock repurchase program to buy back shares worth up to $50 million. The Bedford, MA-basedcompany's shares gained around 2.8% to close at $42.82 on Apr 2. The repurchase program, starting May 1, 2014 will consummate on Apr 30, 2015.

iRobot had a strong cash position worth $165.4 million, exiting the fourth quarter of 2013. The authorization reaffirms the investors' belief on the company's strong future. The company had roughly 29 million shares outstanding as of Mar 31, 2014.

In the fourth quarter of 2013, iRobot reported improved year-over-year results. Earnings per share in the quarter were 11 cents, which compared favorably with a loss of 21 cents in the year-ago quarter. Also, revenues improved 25% year over year to $126.3 million.

iRobot is optimistic of a bright future with product launches expected to drive revenue growth. In first-quarter 2014, revenues are expected in the range of $110.0 to $113.0 million, with earnings per share in the 13 to 17 cents range. Adjusted EBITDA in the quarter is expected in the range of $13 to $15 million.

iRobot Corporation is one of the leading manufacturers of robots worldwide. The company not only leads in the domestic arena but commercial usage as well. iRobot offers robots like Roomba for floor vacuuming, Scooba for floor washing and Mint robot for floor sweeping.

With a market capitalization of $1.2 billion, iRobot currently holds a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry worth a watch include Kadant Inc. KAI, Rockwell Automation Inc. ROK and Lincoln Electric Holdings Inc. LECO. While Kadant sports a Zacks Rank #1 (Strong Buy), Rockwell Automation and Lincoln Electric hold a Zacks Rank #2 (Buy).