IRobot Stocks Plummets After-hours As Roomba Demand Wanes In Japan

Shares of iRobot Corp. tumbled 6% in after-hours trade Tuesday after the company reported a decline in quarterly earnings and issued a top- and bottom-line outlook for the fourth quarter that were far below the Wall Street consensus. The maker of the at-home Roomba robotic vacuum cleaner reported net income of $12.8 million, or 42 cents a share, for the third quarter, compared with $14.6 million, or 48 cents, in the year-earlier period. Analysts were calling for earnings per share of 23 cents. Revenue for the three-month period was $143.6 million, virtually flat from the year-earlier period but below the $145.3 million analysts had been expecting. iRobot is calling for fourth-quarter earnings in the range of 53 cents to 58 cents on revenue between $200 million and $205 million. Analysts polled by FactSet were expecting stronger earnings for the fourth quarter of 65 cents on revenue of $216 million. The company blamed a slower-than-expected recovery in Japan for its "continued caution" there and in a "few other international markets."