iRobot Stock Takes a Hit Amid Sales Decline and Losses

Tuesday, 12 March 2024, 16:42

iRobot (NASDAQ: IRBT) stock has plummeted by 40% in 2024 due to declining sales and significant losses. The company's Q1 guidance predicts further sales decline and continued losses, disappointing Wall Street expectations. Despite a potential improvement in gross margins later in the year, the outlook for iRobot stock remains grim, making it an unattractive investment for 2024.
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iRobot Stock Takes a Hit Amid Sales Decline and Losses

iRobot Stock Plummets in 2024: Here's Why

There's little reason to own iRobot stock in 2024. iRobot (NASDAQ: IRBT) stock isn't having a great 2024. Since Amazon.com (NASDAQ: AMZN) confirmed in January that it will walk away from its deal to buy the Roomba maker, iRobot stock has fallen 40%.

It didn't help that the company released its first financial report post-breakup on Feb. 26 showing sales down 14% and a $2.28 per-share loss in Q4. And now, things are getting worse. iRobot just gave investors guidance for Q1 2024, and its stock is down another 4.2% through 11 a.m. ET.

Is iRobot stock a sell? The other good news is that Q1 may be as bad as things get. While the company's forecast for the rest of 2024 isn't exactly optimistic, it's at least less horrible. Gross margins should improve as the year progresses, and sales declines won't be as dramatic. iRobot forecasts full-year sales between $825 million and $865 million -- only a 3% decline in the best-case scenario.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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