investiment.io
Walmart-Backed Symbotic Stock Plunges on Accounting Errors
Symbotic Inc., a Walmart-backed warehouse automation company, saw its stock plummet due to accounting errors and delayed financial filings, raising concerns over its financial controls.
Symbotic Inc., a warehouse automation company backed by Walmart, experienced a significant stock decline after disclosing accounting errors and delaying its annual financial report. The company's shares fell by as much as 40% on Wednesday, following revelations of "material weaknesses" in its financial reporting controls. Symbotic, which went public in 2022, provides robotic warehouse systems to major retailers, including Walmart, Target, and Albertsons.
The company announced it needed more time to file its annual report due to errors in revenue recognition, which led to inflated financial results. These errors were related to milestone payments and cost overruns that were recognized prematurely. As a result, Symbotic restated its financial results for fiscal 2024, indicating a potential reduction in revenue, gross profit, and adjusted EBITDA by $30 million to $40 million.
Symbotic's stock, which had already fallen 27% this year, was trading at $24.44, potentially erasing $7.59 billion from its market value. The company also revised its revenue forecast for the current quarter, now expecting $480 million to $500 million, down from previous estimates of $495 million to $515 million.
The financial misstatements have prompted several law firms to launch investigations into potential securities fraud, questioning whether the errors were intentional to make the company appear more profitable. Despite the turmoil, some analysts maintain a positive long-term outlook for Symbotic, citing its innovative technology and strategic partnerships.
Walmart, which owns a 14.5% stake in Symbotic, has not commented on the situation. The company is working to improve its internal controls to prevent future errors and aims to file its revised financial statements within the 15-day extension period granted for late filings.
Articles published about this story
- newsbreak.comnewsbreak.com
- investors.cominvestors.com
- ground.newsground.news
- tipranks.comtipranks.com
- marketscreener.commarketscreener.com
- seekingalpha.comseekingalpha.com
- proactiveinvestors.comproactiveinvestors.com
- news.bloomberglaw.comnews.bloomberglaw.com
- mugglehead.commugglehead.com
More stories
- investiment.ioinvestiment.io
Super Micro Computer is set to hire a new CFO following an independent review that found no evidence of fraud, boosting investor confidence and stock prices.
- investiment.ioinvestiment.io
Brazil's efforts to combat illegal gold mining in the Amazon are complicated by Indigenous involvement, economic hardships, and organized crime. Sustainable alternatives like carbon credits are being explored, but skepticism and legal hurdles persist.
- investiment.ioinvestiment.io
Intel's stock rose sharply following the announcement of CEO Pat Gelsinger's retirement, marking the end of a challenging tenure. The company is now led by interim co-CEOs David Zinsner and Michelle Johnston Holthaus as it searches for a permanent successor.
- investiment.ioinvestiment.io
Uber has launched its first water transport service in India, offering shikara rides on Dal Lake in Srinagar, Kashmir. This initiative aims to blend technology with tradition, enhancing tourism and providing economic opportunities for local shikara operators.
- investiment.ioinvestiment.io
Amazon and Orbital Materials have announced a strategic partnership to pilot AI-designed carbon removal materials in data centers, aiming to reduce emissions and enhance sustainability.
- investiment.ioinvestiment.io
QatarEnergy has signed a significant long-term LNG supply agreement with Shell to deliver three million metric tons per annum to China starting in January 2025.
- investiment.ioinvestiment.io
Saudi Arabia is considering reducing its crude oil prices for Asian markets in January, reflecting weak demand and market dynamics.
- investiment.ioinvestiment.io
Naspers reports a significant increase in half-year profits, driven by strong performance in e-commerce and contributions from Tencent.
- investiment.ioinvestiment.io
Prosus NV reported an 89.5% increase in core headline earnings for the first half of the year, driven by strong e-commerce growth and contributions from Tencent.
- investiment.ioinvestiment.io
US shoppers spent a record $10.8 billion online during Black Friday, marking a significant shift from traditional in-store shopping. E-commerce giants like Amazon and Walmart benefited from the surge, while brick-and-mortar stores saw muted growth.