We are investigating iRobot Corporation (IRBT) (“iRobot” or the “Company”) for potential violations of the federal securities laws.
On April 23, 2019, iRobot announced quarterly revenues that were below analyst expectations and also revealed surging inventory levels. On this news, iRobot’s stock price fell $30.15 per share, or 23.09%, to close at $100.42 per share on April 23, 2019. Then, on July 23, 2019, iRobot cut its full-year earnings forecast. On this news, iRobot’s stock price fell $15.12 per share, or 16.87%, to close $74.51 per share on July 24, 2019. Finally, on October 22, 2019, iRobot cut the high end of its revenue expectations for the year, from $1.25 billion to $1.21 billion, and announced that it had rolled back price increases after a “suboptimal” customer response. The Company reported increased inventory levels once again, with third quarter 2019 ending inventory of $248 million or 149 days in inventory (“DII”) compared to the $161 million or 113 DII a year prior. On this news, iRobot’s stock price fell $4.97 per share, or 9.2%, to close at $49.06 per share on October 23, 2019.