Symbotic Reports Q1 Beat: Analysts Boost Their 2024 Estimates, 'Strong Secular Growth Story'

Zinger Key Points
  • Symbotic delivers a strong sales and EBITDA beat for FQ2, one analyst says.
  • The company guides to revenue growth of 44%-51% Y/Y, versus consensus of 44%, another analyst notes.

Symbotic Inc SYM shares were climbing in early trading on Tuesday, after the company reported a sales beat for its fiscal second quarter.

The results were reported amid an exciting earnings season. Here are some key analyst expectations.

KeyBanc Capital Markets On Symbotic

Analyst Ken Newman maintained an Overweight rating and price target of $55.

Symbotic reported its quarterly sales and EBITDA significantly ahead of expectations, while exhibiting strong free cash flow generation, Newman said in a note.

Although the company announced its fiscal third-quarter guidance in-line with consensus, "We think the outlook could be modestly conservative given SYM's recent execution, reaccelerating system initiations, and improving deployment completion schedules," he added.

The analyst raised the earnings estimate for fiscal 2024 from 2 cents per share to 40 cents per share.

"Looking out, we view SYM as a strong secular growth story that should benefit from its solid innovation funnel, including continued ramps in its GreenBox JV, share gain opportunities in non-ambient deployments, and accelerated adoption of the Company's BreakPack solution," he further wrote.

Check out other analyst stock ratings.

Needham On Symbotic

Analyst James Ricchiuti reaffirmed a Buy rating and price target of $54.

Symbotic reported quarterly revenues of $424.3 million, which beat the consensus by 3%, Ricchiuti said. The company's adjusted gross margins came in at 19.7%, representing an expansion of 140 basis points on a year-on-year basis, he added.

"Management guided for FQ3 revenue growth of 44%-51% y/o/y vs. consensus +44%, while SYM guided to slightly better-than-expected adj. EBITDA at the midpoint of the range," the analyst wrote. He raised the revenue and adjusted EBITDA estimates for fiscal 2024 from $1.75 billion to $1.76 billion and from $95.6 million to $97.2 million, respectively.

SYM Price Action: Shares of Symbotic had risen by 9.63% to $45.98 at the time of publication on Tuesday.

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Photo: Symbotic video screenshot

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