Symbotic Stock Soars As Record System Deployments In Q4 Spark Analyst Price Target Hikes: Retail’s Exuberant
Synopsis
Symbotic completed a record 4 robotic warehouse system deployments and initiated 9 new systems in Q4, bringing its deployments to 44.
Shares of Symbotic Inc. ($SYM) jumped over 30% as markets opened onTuesday following a strong fourth-quarter earnings report that exceeded Wall Street estimates and drew bullish reactions from analysts.
The robotics warehouse automation company posted earnings of $0.05 per share, matching estimates, while revenue surged 47% year-over-year (YoY) to $576.76 million, surpassing projections of $470.27 million.
For the first quarter of fiscal 2025, Symbotic anticipates revenue between $495 million and $515 million.
“We completed 4 systems, which was a record, and we started 9 systems, which was also a record for Symbotic,” said the company’s CFO Carol Hibbard, during the earnings call after the bell on Monday.
The uptick in overall deployments led to Wall Street analysts improving their outlook on the company’s stock.
KeyBanc boosted its price target from $40 to $48 with an ‘Overweight’ rating, while Northland upped its target from $50 to $53, maintaining an ‘Outperform’ rating. Needham also increased its target from $40 to $46 with a ‘Buy’ rating.
All three cite the company’s record system completions and system starts as an indicator of higher revenue in the future.
Symbotic now has 44 robotic warehouse systems deployed globally.
Retail sentiment around the stock improved into ‘extremely bullish’ territory from ‘bullish’ a day ago along with an uptick in chatter to ‘extremely high’.
Symbotic remains committed to expanding its customer base at a steady pace, with a target of adding 1 to 2 new customers annually, according to management.
“And as we look forward to 2025, as we announced a few weeks ago, Walmex will be our first new customer in 2025 that will bring our customer set to 10,” said Hibbard.
Symbotic’s stock has lost 21% of its value so far this year.
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