Symbotic Inc. (SYM) shares plummeted on Wednesday after the company announced a delay in filing its annual report due to significant accounting errors. The robotics company revealed material weaknesses in its financial reporting, specifically related to revenue recognition errors and unbillable cost overruns. These issues have led to a restatement of its fiscal year 2024 financial results, with an estimated reduction in system revenue, gross profit, and adjusted EBITDA by $30 million to $40 million. Additionally, Symbotic lowered its revenue outlook for the first quarter of fiscal 2025 to $480 million-$500 million, down from the previous guidance of $495 million-$515 million.
The stock's decline was further exacerbated by multiple downgrades from analysts, including DA Davidson and KeyBanc, following the company's announcement. The news of the accounting errors and the subsequent restatement has raised concerns among investors about the company's internal controls and future financial performance. The announcement of a securities law investigation into potential violations has also added to the negative sentiment surrounding the stock.
Symbotic's stock is currently trading at $22.85, down 38.93% from its previous close of $37.41, and has experienced a 9.01% decline from its opening price of $25.11.