Forget Walmart, Snag This Robotics Stock After Strong Earnings

Retail giant Walmart (WMT) was a standout today, rising 3% after well-received earnings as the company touted expanding margins and a “frictionless approach to serving members by leveraging technology.” One robotics startup that’s key to that frictionless approach? Symbotic (SYM), which soared 27% today after its own quarterly report.

In the fiscal fourth quarter of 2024, Symbotic surpassed analysts’ expectations for both earnings per share and revenue. Q4 earnings arrived at $0.05 per share on a GAAP basis, topping estimates by $0.02 per share, while revenue jumped 47.1% year over year to $576.76 million, surpassing the average estimate by more than $106 million.

Symbotic ended the fiscal year with cash and cash equivalents of $727 million, down by $143 million sequentially. For the full year, revenue increased 55%.

For the first quarter of fiscal year 2025, management is forecasting revenue in the range of $495 million to $515 million, with adjusted EBITDA projected between $27 million to $31 million.

After working as a partner with Walmart previously on automation and e-commerce fulfillment, Symbotic said it has now expanded into Mexico and Central America by adding Walmex as a customer.

SYM is “moderate buy” rated overall, and is still down about 24% YTD, despite today’s big rally.