BEDFORD — Robot maker iRobot Corp.’s second-quarter profit fell 8 percent but still handily beat expectations as sales of home products offset weakness in the company’s defense business.
Shares of iRobot rose $1.71, or 8.8 percent, to $21.20 in after-hours trading. Before the results were released, the shares had dropped 24 cents to $19.49 in regular trading.
The Bedford, Mass., company’s home-robot business, which includes the Roomba vacuum cleaner and Scooba floor washer, grew 50 percent in revenue. But sales plummeted 65 percent in the defense and security line, which makes robots for surveillance, bomb disposal, and other jobs. The company blamed reduced US government funding.
Net income was $7.4 million, or 26 cents per share, compared with $8 million, or 29 cents per share, a year earlier.
Analysts expected 10 cents per share, according to FactSet.
Revenue rose to $111.4 million from $108.1 million a year earlier, topping analysts’ forecast of $107.4 million.
Apple sags in 3Q as iPhone gets cheaper
NEW YORK — Apple products have been getting cheaper. That’s good news for consumers but not for investors, who thought the company would keep boosting profits and revenues at a breakneck pace.
On Tuesday Apple Inc. revealed that its growth slowed in the most recent quarter. In both revenue and net income, the company posted the smallest increases in years, and failed to meet analyst expectations.
It wasn’t so much the volume of sales: Apple sold 17 million iPads in April to June period, beating expectations, and 26 million iPhones, at the low end of expectations.
But Apple’s average selling prices for both gadgets declined to levels last seen in 2010 for the iPhone and the lowest levels ever in the case of the iPad.
Apple introduced a new iPad in March, but kept the older model in stores while cutting its price. The average selling prices of Macs also fell.
Net income in Apple’s fiscal third quarter was $8.8 billion, or $9.32 per share. That was up 21 percent from $7.3 billion, or $7.79 per share, a year ago.
Analysts polled by FactSet were expecting earnings of $10.37 per share.
Revenue at the Cupertino, Calif., company was $35 billion, up 23 percent. Analysts were expecting $37.5 billion.
Apple shares fell $34.99, or 5.8 percent, to $565.93 in after-hours trading.
Biogen Idec profit rises on Avonex sales
Biogen Idec Inc., the third-largest US biotechnology company, reported profit that topped analysts’ estimates as sales increased from its top-selling multiple sclerosis medicine Avonex and cancer therapy Rituxan.
Second-quarter net income surged 34 percent to $386.8 million, or $1.61 a share, from $288 million, or $1.18, a year earlier, the Weston, Mass., company said. Earnings excluding some items of $1.82 topped by 26 cents the average of 21 analysts’ estimates compiled by Bloomberg. Revenue beat estimates by about $90 million.
Biogen Idec said profit this year is expected to be more than $6.20 a share, 5 cents higher than its May 1 forecast. The company has been increasing sales of Avonex, Rituxan, and Tysabri, another MS therapy, while developing new medicines to introduce to the market.
Biogen Idec rose less than 1 percent to $139.48 at 4 p.m. New York time. The shares have gained 27 percent this year.