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Symbotic is a key provider of intelligent robotics systems for warehouses
SYM is in the midst of a huge swing to profits but recently missed big twice
While datacenter stocks soar above 20X sales, can SYM support 10X sales?
Symbotic ((SYM - Free Report) ) is a $28 billion provider of advanced robotics for warehouses. The company considers itself the "Backbone of Commerce."
I was a big fan $13 billion lower in February, but we got flushed out by the tariff tantrums. Here's what I wrote to my TAZR Trader group on 2/10/25...
Portfolio is buying Symbotic (SYM - Free Report) , a $15 billion provider of advanced robotics for warehouses.
Shares have suffered a few recent downgrades from Goldman and RayJay, but I believe they offer decent GARP near $25 and 5X sales growing over 24%. We'll start with a 6-7% position and go from there.
With its A.I.-powered robotic technology platform, Symbotic is changing the way consumer goods move through the supply chain. Intelligent software orchestrates advanced robots in a high-density, end-to-end system – reinventing warehouse automation for increased efficiency, speed and flexibility.
Symbotic is growing the topline by 22.6% to $2.3 billion in the current fiscal year (ends Sep). And next year is projected to see a 26% advance to nearly $2.9 billion.
Meanwhile, the bottom line is suddenly soaring with a big flip to profitability this year and a +235% projected launch to 44-cents EPS next year.
(end of Feb buy note)
After a nearly 300% rally off of the April lows (due to a price spike to $64 on Aug 5), SYM is now in the cellar of the Zacks Rank as growth is not catching up.
Following a big EPS miss last month, analysts have taken down next year's consensus over 20% from 51-cents to 40-cents. Fiscal year 2026 begins in October.
On August 6, Symbotic came out with a quarterly loss of 5-cent per share versus the Zacks Consensus Estimate of a 4-cent profit. This compared to a loss of 2-cents per share a year ago.
This quarterly report represents an earnings surprise of -225.00%, and it's basically deja-vu all over again as a quarter ago it was expected that SYM would post earnings of $0.05 per share when it actually produced a loss of $0.04, delivering a surprise of -180%.
Symbotic is still expected to close out this fiscal year (ends Sep) with the big 400% swing to profitability from last year's loss of 8-cents to a profit of $0.24.
What About the 20% Revenue Growth?
Symbotic, which belongs to the Zacks Technology Services industry, posted revenues of $592.12 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 10.55%.
This compares to year-ago revenues of $491.86 million. The company has topped consensus revenue estimates three times over the last four quarters.
That revenue growth is terrific, but now at over 10X next year's topline forecast, some investors will be cautious. To explore the dynamics deeper, I recommend this article from Zacks Research last week...
Bottom line: Robotics are already dominating factories and warehouses and their proliferation will only persist. Keep SYM on a watch list if it falls back further and watch the Zacks Rank to let you know when the profit picture turns up.
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Bear of the Day: Symbotic (SYM)
Key Takeaways
Symbotic ((SYM - Free Report) ) is a $28 billion provider of advanced robotics for warehouses. The company considers itself the "Backbone of Commerce."
I was a big fan $13 billion lower in February, but we got flushed out by the tariff tantrums. Here's what I wrote to my TAZR Trader group on 2/10/25...
Buying Symbotic (SYM - Free Report)
TAZR Traders
Portfolio is buying Symbotic (SYM - Free Report) , a $15 billion provider of advanced robotics for warehouses.
Shares have suffered a few recent downgrades from Goldman and RayJay, but I believe they offer decent GARP near $25 and 5X sales growing over 24%. We'll start with a 6-7% position and go from there.
With its A.I.-powered robotic technology platform, Symbotic is changing the way consumer goods move through the supply chain. Intelligent software orchestrates advanced robots in a high-density, end-to-end system – reinventing warehouse automation for increased efficiency, speed and flexibility.
Symbotic is growing the topline by 22.6% to $2.3 billion in the current fiscal year (ends Sep). And next year is projected to see a 26% advance to nearly $2.9 billion.
Meanwhile, the bottom line is suddenly soaring with a big flip to profitability this year and a +235% projected launch to 44-cents EPS next year.
(end of Feb buy note)
After a nearly 300% rally off of the April lows (due to a price spike to $64 on Aug 5), SYM is now in the cellar of the Zacks Rank as growth is not catching up.
Following a big EPS miss last month, analysts have taken down next year's consensus over 20% from 51-cents to 40-cents. Fiscal year 2026 begins in October.
On August 6, Symbotic came out with a quarterly loss of 5-cent per share versus the Zacks Consensus Estimate of a 4-cent profit. This compared to a loss of 2-cents per share a year ago.
This quarterly report represents an earnings surprise of -225.00%, and it's basically deja-vu all over again as a quarter ago it was expected that SYM would post earnings of $0.05 per share when it actually produced a loss of $0.04, delivering a surprise of -180%.
Symbotic is still expected to close out this fiscal year (ends Sep) with the big 400% swing to profitability from last year's loss of 8-cents to a profit of $0.24.
What About the 20% Revenue Growth?
Symbotic, which belongs to the Zacks Technology Services industry, posted revenues of $592.12 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 10.55%.
This compares to year-ago revenues of $491.86 million. The company has topped consensus revenue estimates three times over the last four quarters.
That revenue growth is terrific, but now at over 10X next year's topline forecast, some investors will be cautious. To explore the dynamics deeper, I recommend this article from Zacks Research last week...
Symbotic's Premium Valuation: Buy, Hold or Sell the Stock Now?
Bottom line: Robotics are already dominating factories and warehouses and their proliferation will only persist. Keep SYM on a watch list if it falls back further and watch the Zacks Rank to let you know when the profit picture turns up.