Symbotic Inc. is experiencing a significant drop in its stock price following the company's announcement of a delay in filing its Annual Report on Form 10-K for the fiscal year ended September 28, 2024. The delay is due to the need for additional time to assess the financial impacts of correcting errors related to system revenue recognition. These errors, identified on November 25, 2024, involve cost overruns on certain deployments that will not be billable, affecting system revenue, gross profit, and adjusted EBITDA for the second, third, and fourth quarters of fiscal year 2024. The company has also identified material weaknesses in its internal controls over financial reporting, which it is working to remediate.
Additionally, Symbotic has revised its revenue outlook for the first quarter of fiscal year 2025, now expecting revenue between $480 million and $500 million, below the consensus estimate of $507.71 million. This revision is based on the company's analysis of its deployments and the impact of the identified errors. The company has stated that its previously issued financial results for the fourth quarter and fiscal year 2024 should no longer be relied upon, further contributing to investor concerns.
Symbotic's stock is down 24.35% pre market, trading at $28.30 as of 7:31 am on November 27, 2024, compared to the previous close of $37.41.