Arete has started its analysis on Symbotic (SYM, Financial) by giving the company a Buy rating. This suggests that Arete sees potential growth and value in Symbotic's future performance. Accompanying this positive outlook is a price target set at $50, indicating that Arete anticipates an upward trajectory for the company's stock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Symbotic Inc (SYM, Financial) is $32.34 with a high estimate of $60.00 and a low estimate of $10.00. The average target implies an upside of 0.44% from the current price of $32.20. More detailed estimate data can be found on the Symbotic Inc (SYM) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, Symbotic Inc's (SYM, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Symbotic Inc (SYM, Financial) in one year is $46.62, suggesting a upside of 44.78% from the current price of $32.2. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Symbotic Inc (SYM) Summary page.
SYM Key Business Developments
Release Date: May 07, 2025
- Revenue: Increased by 40% year-over-year to $550 million.
- Net Loss: Reduced to $21 million from $55 million in the second quarter of fiscal 2024.
- Adjusted EBITDA: $35 million, more than tripled from $9 million in the year-ago quarter.
- Operational Systems: Total of 37 operational systems, doubling from the previous record of 4 systems completed in the quarter.
- Software Revenue: Grew by over 160% year-over-year to $6.7 million.
- Operations Services Revenue: Increased by 47% year-over-year to $29.6 million.
- Backlog: $22.7 billion, up from $22.4 billion last quarter.
- Gross Margin: Improved significantly on a sequential basis, with software maintenance and support margins exceeding 65%.
- Cash and Equivalents: $955 million, up from $903 million in the first quarter.
- Cash from Operations: $270 million in the quarter.
- Capital Expenditures: $21 million.
- Third Quarter Outlook: Expected revenue between $520 million to $540 million and adjusted EBITDA between $26 million and $30 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Symbotic Inc (SYM, Financial) reported a 40% year-over-year revenue growth, reaching $550 million in the second quarter.
- The company significantly improved its gross margins due to better project execution and cost control.
- Symbotic Inc (SYM) has a strong multiyear opportunity with a backlog of nearly $23 billion.
- The acquisition of Walmart Advanced Systems and Robotics (ASR) has expanded Symbotic Inc (SYM)'s product portfolio, including micro-fulfillment solutions.
- The company has successfully reduced its net loss to $21 million from $55 million in the previous year, showcasing financial improvement.
Negative Points
- Revenue guidance for the third quarter is expected to be lower, between $520 million to $540 million, indicating a sequential decline.
- The company anticipates a decrease in adjusted EBITDA margin in the third quarter compared to the second quarter.
- Operating expenses have increased due to acquisitions and investments, impacting overall profitability.
- System starts and completions are expected to remain lumpy, which could affect revenue consistency.
- The impact of tariffs is not included in the current financial guidance, which could pose a risk to future margins.
