SYM - Symbotic Stock Plunges 19% Despite Earnings Beating and Revenue Meeting Wall Street's Estimates
2024-02-06 08:19:49 ET
Shares of Symbotic (NASDAQ: SYM) , which makes artificial intelligence (AI)-enabled robotics technology for supply chains, dropped 18.7% in Monday's after-hours trading following the company's release of its report for the first quarter of fiscal 2024 (ended Dec. 30, 2023).
This sell-off was likely largely due to the quarter's revenue "only" meeting Wall Street's consensus estimate, rather than beating it, even though revenue growth was strong. Investors have bid Symbotic stock up considerably over the last year (it's up 226% over the one-year period through Monday's regular trading session), so have very high expectations for its results.
Some investors probably also didn't like that the quarter's operating cash flow was negative, compared with positive in the prior and year-ago quarters. That said, investors don't usually punish stocks in such situations -- or at least not by much -- because operating cash flows are often lumpy from quarter to quarter for small companies.
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Symbotic Stock Plunges 19% Despite Earnings Beating and Revenue Meeting Wall Street's Estimates