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On Tuesday, Symbotic Inc. (NASDAQ: NASDAQ:SYM) saw its stock price target increased by Needham to $46 from $40, while the firm maintained a Buy rating on the stock.
Symbotic concluded its fiscal year 2024 with robust performance, surpassing the fourth-quarter consensus revenue and adjusted EBITDA estimates. The company reported a 47% year-over-year revenue increase, which was 21% higher than the top end of its guidance and 23% above the consensus. This surge was attributed to a record number of system starts, significant progress on systems currently being deployed, and the completion of a record four systems.
The company's system gross margins showed sequential improvement and were slightly higher than consensus expectations. Symbotic's adjusted EBITDA significantly exceeded forecasts, coming in more than 75% above expectations, benefiting from lower operating expenses.
Looking ahead, Symbotic has provided guidance for the first quarter of fiscal year 2025, projecting growth of 38% to 43% year-over-year, compared to the consensus estimate of a 35% increase. However, the company anticipates adjusted EBITDA for the quarter to be 28% below the consensus, mainly due to higher projected operating expenses.
Despite the weaker-than-expected adjusted EBITDA guidance for the first quarter of fiscal year 2025, the company's strong finish to fiscal year 2024 is expected to positively influence investor sentiment.
In other recent news, Symbotic Inc. reported a strong fourth quarter for fiscal 2024, exceeding analyst expectations. The AI-enabled robotics technology company posted a revenue of $577 million, marking a 47% increase year over year. Moreover, the company reported a net income of $28 million, a significant upturn from the net loss of $45 million in the same quarter last year.
For the full fiscal year 2024, Symbotic's revenue grew by 55% to $1,822 million, despite a net loss of $51 million for the year. In the near future, Symbotic anticipates revenue between $495 million and $515 million for the first quarter of fiscal 2025.
The company also recently announced a restatement of its interim fiscal 2024 financial results due to adjustments in revenue and cost recognition. These are among the recent developments surrounding Symbotic Inc.
InvestingPro Insights
Symbotic's recent performance aligns with several InvestingPro Tips and metrics, providing additional context to the company's financial situation. According to InvestingPro data, Symbotic's revenue growth for the last twelve months as of Q3 2024 was an impressive 62.86%, corroborating the strong revenue performance mentioned in the article. This growth trend is expected to continue, as one InvestingPro Tip suggests that analysts anticipate sales growth in the current year.
Despite the company's robust revenue growth, it's worth noting that Symbotic is not currently profitable, with a negative P/E ratio of -157.42. However, an InvestingPro Tip indicates that analysts predict the company will be profitable this year, which could explain the optimistic price target increase by Needham.
The stock's recent performance has been mixed, with a strong 21.41% return over the last three months, but a significant 30.53% decline over the past six months. This volatility is reflected in an InvestingPro Tip that highlights the stock's price movements as quite volatile.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Symbotic, providing a deeper understanding of the company's financial health and market position.
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