Symbotic's Q2 Earnings Beat Guidance, Prompts Price Target Increase

Baird's Robert Mason raised their price target on Symbotic (NASDAQ: SYM) by 1.9% from $52 to $53 on May 7, 2024. The analyst maintained their Buy rating on the stock. Mason's price target hike followed an assessment of Symbotic's second quarter 2024 earnings report. The company's revenue and EBITDA both beat guidance and consensus numbers, according to Mason. As a result, Mason believes Symbotic will resume launching its new systems after halting them in the previous quarter.

Symbotic reported the following financial results for the second quarter of 2024: - Loss per share of $0.07, which missed the Zacks Consensus Estimate of $(0.03) but beat Q2 2023's $(0.10) by 30%. - Revenue of $424.3 million, which exceeded the Zacks Consensus Estimate by 2% and grew 59% compared to Q2 2023's $266.85 million. - EBITDA of $22.45 million, compared to Q2 2023's $(11.23) million.

For the third quarter of 2024, Symbotic management guided for revenue of $450 million to $470 million and EBITDA of $27 million to $29 million. Chairman and CEO Rick Cohen expressed satisfaction with the company's performance, stating, "We executed well for our customers, made significant progress on our innovation roadmap, and delivered solid financial results." CFO Carol Hibbard also highlighted the company's advancements in software and hardware, which helped accelerate deployment progress and achieve faster revenue growth, higher margins, and stronger cash generation than planned for the quarter.

In addition to Baird's Robert Mason, Deutsche Bank's Nicole Deblase also issued an update on Symbotic on May 7, 2024. Deblase raised their price target by 1.8% from $57 to $58 and maintained their Strong Buy rating on the stock.

According to data from WallStreetZen, 83.3% of top-rated analysts currently rate SYM as a Strong Buy or Buy. 16.7% see it as a Hold, and no analysts recommend or strongly recommend selling the stock.

Since Symbotic's latest quarterly report on May 6, 2024, the stock price has increased by 10.9%. Year-over-year, the stock is up 65.5%. During that period, SYM has outpaced the S&P 500, which has grown by 25.4%.

Baird analyst Robert Mason is ranked in the top 21% out of 4,577 Wall Street analysts by WallStreetZen. Mason specializes in the Industrials and Technology sectors and has an average return of 68.8% and a win rate of 77.8%.

Symbotic Inc., a Massachusetts-based automation technology company, provides robotics and technology solutions to improve efficiency for retailers and wholesalers in the United States. It offers The Symbotic System, a full-service warehouse automation system aimed at reducing costs, improving efficiency, and maximizing inventory.

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