Symbiotic Analysts Slash Their Forecasts After Weak Earnings

Author: Avi Kapoor | July 30, 2024 11:26am

Symbotic Inc. (NASDAQ:SYM) reported worse-than-expected third-quarter earnings results and issued fourth-quarter revenue guidance below estimates on Monday.

Symbotic reported fiscal third-quarter revenue of $491.862 million, beating analyst estimates of $464.55 million, according to Benzinga Pro. The company reported an earnings loss of 2 cents per share, missing estimates for positive earnings of 1 cent per share.

"Our teams continue to focus on execution of the 39 systems we have in deployment, which is reflected in our record revenue for the quarter. Our system gross margin fell below expectations due to elongated construction schedules and implementation costs," said Rick Cohen, chairman and CEO of Symbotic. "We are focused on improving our planning, speed of implementation and project management to improve performance."

Symbotic said it expects fourth-quarter revenue to be in the range of $455 million to $475 million. The company anticipates fourth quarter adjusted EBITDA of $28 million to $32 million.

Symbiotic shares dipped 21.1% to trade at $28.13 on Tuesday.

These analysts made changes to their price targets on Symbiotic following the announcement.

• Needham analyst James Ricchiuti maintained Symbotic with a Buy rating, while lowering the price target from $54 to $40.
• Craig-Hallum analyst Greg Palm maintained the stock with a Buy rating and slashed the price target from $54 to $45.
• Citigroup analyst Itay Michaeli maintained Symbotic with a Buy rating, while cutting the price target from $62 to $49.

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Posted In: SYM