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Industry Focus

CG: Will Tariffs Kill iRobot’s Momentum in 2019?

Industry Focus

The Motley Fool

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4.6854 Ratings

🗓️ 18 December 2018

⏱️ 22 minutes

🧾️ Download transcript

Summary

While a new slate of Roomba offerings drives accelerating top and bottom line growth for the company, rising tariffs on iRobot’s China-made vacuums have investors worried about near-term profitability and sales. We break down the latest results and outlook for the world’s leading consumer robot company. Stock: IRBT

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Transcript

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0:00.0

Welcome to Industry Focus, the podcast it dives into a different sector of the stock market every day.

0:06.4

I'm your host, Fitz and Shen, and joining me today via Skype is Senior Motley Full Contributor,

0:10.5

Ossit-Charma.

0:11.5

Hey, Ossit, thanks for helping on.

0:13.0

Thanks so much, Vince. Happy to be here, as always.

0:16.0

So as a reminder to anyone who has missed my previous announcements,

0:19.0

this is the last show I pre-recorded before seeing my goodbyes to the industry-focused team.

0:24.8

So some 200 episodes captured in this studio, I've said it before, I'll say it again.

0:29.6

Thank you for being a part of this journey.

0:31.6

I said, I'm glad we're going to wrap up 2018 with a company that I personally think is building something

0:36.8

special and that company is I-Robot-I-R-B-T.

0:40.6

So it's been well over a year since our last update on the company in that time the stock declined as much as 40% before returning to positive territory.

0:48.0

For 2018, at least as of this recording, IRobot is up 10% year-to-date topping the flat performance for the S&P 500.

0:56.4

So we're not going to rehash the entire business description, but I said for fools who don't

1:01.6

know this company are only vaguely familiar with its consumer robots.

1:06.6

Really quick, what's the story here?

1:08.8

I robot is the manufacturer of the very popular Rumba device which is a vacuuming device.

1:14.8

It also makes a mopping device called the Brava.

1:19.7

The company is a

1:23.0

pioneer to have hands-free experience and have your house vacuumed.

1:28.0

Along the way, it's developed a lot of credentials

1:31.0

in data mapping.

...

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