Yahoo Finance Earnings Release: Here's Why Analysts Cut Their Symbotic Inc. (NASDAQ:SYM) Price Target To US$18.64
Symbotic Inc. (NASDAQ:SYM) investors will be delighted, with the company turning in some strong numbers with its latest results. Symbotic outperformed on both revenues and the expected loss per share, with revenues of US$593m beating estimates by 18%. Statutory losses were US$0.13, 46% smaller thanthe analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Symbotic
Taking into account the latest results, the most recent consensus for Symbotic from eleven analysts is for revenues of US$936.8m in 2023 which, if met, would be a huge 58% increase on its sales over the past 12 months. Losses are expected to increase substantially, hitting US$0.13 per share. Before this earnings announcement, the analysts had been modelling revenues of US$879.8m and losses of US$0.024 per share in 2023. While this year's revenue estimates increased, there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
Spiting the revenue upgrading, the average price target fell 6.8% to US$18.64, clearly signalling that higher forecast losses are a valuation concern. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Symbotic at US$24.00 per share, while the most bearish prices it at US$10.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Symbotic'shistorical trends, as the 58% annualised revenue growth to the end of 2023 is roughly in line with the 50% annual revenue growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.2% per year. So it's pretty clear that Symbotic is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Symbotic. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Symbotic's future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Symbotic going out to 2025, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Symbotic (1 shouldn't be ignored) you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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