On Wednesday, Symbotic Inc (NASDAQ:SYM) announced a delay in filing its Annual Report on Form 10-K for the fiscal year ending September 28, 2024.
The company cited the need for additional time to evaluate revenue recognition errors’ financial impacts and address related internal control weaknesses. The stock is down 31% in premarket trade.
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These issues were initially identified in Symbotic’s recent earnings release. The company’s review uncovered revenue recognition errors related to cost overruns on specific deployments. These inaccuracies impacted system revenue recognized in the second, third, and fourth quarters of fiscal year 2024.
The company estimates the total impact of correcting these errors will be to lower system revenue, system gross profit, income (loss) before income tax, and adjusted EBITDA by $30 million to $40 million for fiscal year 2024 compared to the financial results released on November 18, 2024.
Symbotic now projects first-quarter fiscal 2025 revenue of $480 million – $500 million (prior $495 million – $515 million) versus the $503.6 million estimate, alongside adjusted EBITDA of $12 million – $16 million (prior $27 million -$31 million). The company has committed to amending its previous financial disclosures to reflect these adjustments.
In response to these material weaknesses, Symbotic is implementing strategies to enhance internal control over financial reporting. The company expects to file its Form 10-K and amended quarterly reports on Form 10-Q for fiscal year 2024 within the 15-day extension period allowed for late filings.
Symbotic stock plunged 25% year-to-date. Symbotic will also be amending its Current Report on Form 8-K concerning this matter to indicate that its financial results for the fourth quarter and fiscal year 2024, issued on November 18, should no longer be relied upon.
On CNBC’s “Mad Money Lightning Round,” Jim Cramer highlighted Symbotic as a substantial investment opportunity, noting its profitability and position in a rapidly growing sector.
Price Action: SYM stock is down 31% at $25.79 premarket at last check Wednesday.
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