Important points
- Symbotic stock soared more than 40% on Tuesday after the Walmart-backed supply chain technology company reported record profits due to improved margins and the rollout of new systems.
- The AI-powered robotics company announced a 98% increase in fiscal year 2023 revenue from 2022.
- Walmart is the company’s main customer, as well as an investor with over 62% stake.
Shares of Symbotic (SYM), the warehouse automation systems maker backed by Walmart (WMT) and SoftBank, soared more than 40% on Tuesday after the company reported record earnings as it improved margins and introduced new systems. It skyrocketed.
Symbotic, which develops artificial intelligence (AI)-powered robotics platforms and provides end-to-end supply chain solutions, reported fiscal fourth-quarter sales of $392 million, up from $200 million in the same period last year. It reported a net loss of $45 million, up from $44 million. The loss of 8 cents per share narrowed from a loss of 10 cents per share a year earlier. Symbotic’s full-year sales were $1.77 billion, an increase of 98% from 2022.
“We are pleased to report another quarter of strong revenue and profit growth as we began implementing four new systems and completed commissioning of two systems. We also accelerated the pace of system implementation.” said Tom Ernst, Symbotic CFO, in a release.
Symbotik’s technology is housed in warehouses across the United States, and its customers include major retailers such as Walmart and Target (TGT). Joe Metzger, Walmart’s executive vice president of supply chain operations, calls the Symbolic system a “first-of-its-kind technology” that uses complex algorithms to “develop high-speed mobile bots. Store the case like a puzzle piece and work with fast precision. Improved acceptance processes and increased accuracy of shipments stored for future orders. ”
In addition to being a customer of Symbotic, Walmart owns more than 62% of the company’s stock, according to filings with the U.S. Securities and Exchange Commission. Softbank also owns a large amount of the company’s stock, and it has been revealed that it owns over 33% of Symbotik’s shares.
Tuesday’s gains have seen Symbotik’s stock more than quadruple in value since the beginning of the year.