Dropping close to its 52-week low of $17.11, an AI-powered warehouse automation business Symbotic Inc. (SYM, Financial) has dropped over 10% in the past month and more than 50% year-to-date. Following the revelation of income recognition mistakes and the delay in the annual report filing, the dramatic fall includes a 40% decrease on November 27. The company said that during the fiscal year ending September 28, income and expenses connected to project milestones were prematurely recorded. Further affecting results in the second, third, and fourth quarters were additional mistakes linked to non-billable cost overruns. Symbotic forecasts these problems might lower adjusted EBITDA by $30 million to $40 million, gross profit, and full-year system revenue.
The company responded by cutting its first-quarter revenue estimate from the previous projection of $495 million-$515 million to $480 million +/-. Investor sentiment has turned sour as Symbotic attempts to evaluate the financial impact and tighten internal controls, therefore casting questions about company governance and long-term viability. The strong market response emphasizes the need for accurate financial reporting in sectors of significant growth like robotics and automation.
