iRobot Corp. (IRBT) stock prices were down 0.59% as of the market closing on July 28th, 2021, bringing the price per share down to USD$88.83 at the end of the trading day. Subsequent premarket fluctuations saw the stock drop by 8.25%, bringing it down to USD$7.33.
Revenue Reports
The second quarter of fiscal 2021 saw IRBT stock report revenues in the amount of USD$365.6 million, up 31% from the USD$279.9 million reported for the prior-year quarter. This year-over-year increase was largely driven by healthy demand from retailers in North America, as well as from the company’s retail and distribution partners in EMEA. Revenue for the first half of 2021 was reported at USD$668.9 million, up from the USD$472.4 million reported in the same time period of the prior year.
IRBT Stock’s Liquidity Position
IRBT stock reported cash, cash equivalents, and short-term investments in the amount of USD$415.8 million as of July 3rd, 2021. This is compared to the USD$500.8 million reported as of April 3rd, 2021, and USD$483.7 million reported at the end of 2020. With the company having absolved itself of all of its debt, it also gained access to an unsecured revolving line of credit in the amount of USD$150 million, with an additional USD$75 million accordion feature.
Quarterly Developments
The second quarter of 2021 saw the company repurchased 446,954 shares of its common stock. The transaction totaled roughly USD$50 million, with an average share purchase price of USD$111.85. IRBT stock reported having appointed Faris Habbaba as EVP and Chief Research and Development Officer. The company’s proprietary Roomba was a featured product on Amazon’s Prime Day event for the 7th consecutive year, with the product being cited as a top-seller by Amazon.
Accelerated Share Repurchase Agreement
IRBT stock recently announced its intention to enter into an accelerated share repurchase agreement, which would see the company repurchase USD$100 million of its common stock. The accelerated share repurchase program is forecasted to be executed in August of 2021. The company plans to fund the repurchase program by leveraging its current solid liquidity position, with a Current Report on Form 8-K expected to be filed when the ASR is formally executed.
Future Outlook for IRBT
Armed with the success of its financial reports for the quarter, as well as the traction its strategic developments are gaining, IRBT stock is poised to capitalize on the opportunities ahead of it. The company is keen to extend the success of its recent quarters into the upcoming return of the economy to pre-pandemic levels.
