Symbotic (US:SYM) ZACKS·2025-12-17 18:36Core Insights - Symbotic (SYM) reported better-than-expected earnings per share (EPS) of 53 cents for Q4 fiscal 2025, significantly surpassing the Zacks Consensus Estimate of 7 cents and up from 5 cents in the same quarter last year [5] - Revenues reached $618.5 million, exceeding the Zacks Consensus Estimate by 3.1% and showing year-over-year growth, with a backlog of $22.5 billion driven by project pricing and the addition of Medline [6][10] - Despite strong earnings and revenue performance, SYM's shares have declined by 18.9% since the earnings release, underperforming compared to its industry and peers [1] Financial Performance - The company’s Q4 fiscal 2025 EPS was 53 cents, a significant increase from 5 cents in the previous year [5] - Revenues of $618.5 million were bolstered by systems contributing 94.1% of the total, with software revenues increasing by 57% year-over-year to $9.3 million and operations services revenues rising by 21% to $26.9 million [6] - For Q1 fiscal 2026, SYM projects revenues between $610 million and $630 million, indicating a year-over-year growth of 25-29% [7] Backlog and Future Outlook - SYM's backlog of $22.5 billion provides strong visibility into future revenue generation, contributing to the year-over-year revenue growth in Q4 fiscal 2025 [10] - The company is positioned for potential margin expansion due to ongoing system deployments and has solid free cash flow and a favorable current ratio indicating healthy liquidity [10] Risks and Challenges - SYM faces valuation concerns, trading at a forward price-to-sales ratio of 12.77, which is higher than industry levels and peers [16] - The company has a significant reliance on Walmart, its largest customer, which raises customer concentration risks [14][15] - Technical indicators suggest a lack of strong performance momentum, with SYM trading below its 14-day moving average and holding a Momentum Score of F [11]