Needham & Company analyst James Ricchiuti reiterated a Buy rating, raised estimates and raised his price target on iRobot Corporation (NASDAQ: IRBT) to $42.00 (from $41.00) following Q3 EPS that came in 15 cents, or 45%, above Street expectations, driven by impressive 19% growth in home robots, near-record gross margins and lower than expected operating expense.

Ricchiuti commented, "Results benefited from an earlier-than-expected round of reorders from its large domestic retailers. IRBT's Defense & Security business also posted stronger than expected revenues. As a result of earlier replenishment of retail stock and some earlier D&S shipments in Q3, guidance for the December quarter was below consensus. Mgmt reaffirmed its full-year revenue guidance and with the Q3 beat increased its 2014 EPS outlook. IRBT shares rose sharply on the news. We believe the stock can continue to work higher over the next year as new growth legs emerge."

The firm raised 2014 full-year EPS est. goes to $1.25 from $1.10. They raised 2015 EPS est. to $1.40 from $1.35.

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Shares of iRobot Corporation closed at $31.61 yesterday.