Why iRobot Stock Keeps Falling

Core Viewpoint - iRobot's stock has significantly declined following the termination of its acquisition deal with Amazon, with a 40% drop since January 2024, compounded by disappointing financial results and guidance for Q1 2024 [1][2]. Financial Performance - iRobot reported a 14% decline in sales and a loss of $2.28 per share in Q4 2023, which was the first financial report after the breakup with Amazon [1][2]. - For Q1 2024, iRobot expects sales between $137 million and $142 million, indicating a potential 14% year-over-year decline, with losses projected at least $2 per share, possibly up to $2.13 [2]. - Wall Street had anticipated sales of $158 million and losses of less than $2 per share, indicating that iRobot's guidance is worse than market expectations [2]. Future Outlook - Despite the bleak Q1 forecast, iRobot's projections for the remainder of 2024 suggest that conditions may improve, with gross margins expected to improve and sales declines not as severe [3]. - The full-year sales forecast is between $825 million and $865 million, representing only a 3% decline in the best-case scenario [3]. - However, earnings are still expected to be poor, with GAAP losses projected between $2.70 and $3.13 per share, aligning closely with non-GAAP forecasts of $3.30 to $3.73 [3].