Symbotic (NASDAQ:SYM) stock tumbled 20% in after-market trading on Monday, Feb. 5, after the AI robotics firm reported a muted outlook in its fiscal first quarter results. Management expects next-quarter revenues to fall between $400 million and $420 million, an 11.4% sequential increase at its midpoint. Adjusted EBITDA is expected to decrease from $14 million to $13.5 million at its midpoint.
This caused CEO Rick Cohen to strike an optimistic tone in the press release:
“Fiscal year 2024 is off to a solid start with strong financial and operational result. We will continue to innovate and build deployment capacity to support growth and increased profitability for our stakeholders.”
Symbotic’s first-quarter revenues of $369 million also came within 1% of Wall Street estimates and net losses of 2 cents per share beat expectations of a 5 cent EPS loss.
Nevertheless, many analysts have become increasingly concerned about Symbotic’s profit trajectory. Wall Street has now cut Symbotic’s EPS estimates from 50 cents at the beginning of the year to 42 cents. Symbotic’s high valuations have also been a concern. Despite today’s decline, shares still trade at over 15 times forward revenues.
Investors can expect Symbotic to next report earnings in May.
On the date of publication, Thomas Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Thomas Yeung produced this article using data from Thomson Reuters and unique generative AI prompts. These prompts help distill real-time quarterly earnings data and combine it with InvestorPlace.com’s best-in-class analysis. Our readers get a deep dive into financial results at lightning speed. These articles have been reviewed by a human editor prior to publication. To report any concerns or inaccuracies, please contact us at editor@investorplace.com.
