Boston, MA – Symbotic, a robotics automation company, saw its stock plummet by almost 40% on Wednesday after announcing a delay in filing its annual report due to identified “material weaknesses” in financial reporting controls. The company, which also adjusted its sales guidance, disclosed errors related to cost overruns and expenses tied to specific milestones prior to their achievement.
In a press release, Symbotic revealed that it had restated results for previous quarters following the discovery of additional errors affecting revenue recognition. The company estimated that correcting these errors could result in a $30 million to $40 million impact on various financial metrics for the fiscal year of 2024. Along with these adjustments, Symbotic revised its sales outlook for the current quarter to be between $480 million and $500 million.
Founded in 2022, Symbotic offers a robotics automation platform used by retail clients like Walmart, which is also an investor in the company. Despite experiencing a surge of over 300% in 2023, Symbotic’s stock has plummeted by more than 50% year-to-date, including the recent decline. MarketSurge reported that the stock’s Relative Strength Rating fell to 79 out of 99, with shares dropping below key moving averages.
The challenges faced by Symbotic raise concerns about the company’s financial stability and transparency. The impact of the errors on revenue and profitability underscores the importance of robust financial controls and oversight within organizations. Investors and analysts will be closely monitoring how Symbotic addresses these issues and whether it can regain market confidence.