Yahoo Finance How to Play Symbiotic (SYM) Ahead of Its Q2 Earnings Results?
Symbiotic, Inc. SYM will report its second-quarter fiscal 2024 results on May 6, after market close.
Let’s check out how SYM has lately been doing.
Stock Performance & Valuation
The stock has gained 57.7% over the past year, outperforming the 55.8% rally of the industry it belongs to and the 23.6% rise of the Zacks S&P 500 composite. On the basis of price-to-sales, SYM is trading at 5.22X compared with the industry’s 6.91X.
Symbotic Inc. Price
Symbotic Inc. price | Symbotic Inc. Quote
Sales & Margin Performance
Year 2023 was exceptional for the company. Total revenues increased more than 100% to $1.1 billion. Growth across all the different segments resulted in such a rise. The adjusted EBITDA loss was $17.6 million compared with the year-ago loss of $89.8 million. This significant recovery in the adjusted EBITDA loss demonstrates the company’s ability to improve operational efficiency. SYM’s adjusted gross profit margin increased 150 basis points year over year to 18.4%.
Liquidity
SYM’s current ratio (a measure of liquidity) was at 1.2 at the end of first-quarter 2024, higher than the preceding quarter’s 1 and the year-ago quarter’s 1.1. A current ratio of more than 1 often indicates that a company will easily pay off its short-term obligations.
Sales & EPS Growth Prospects
The Zacks Consensus Estimate for SYM’s 2024 sales and EPS implies year-over-year growth of 49.6% and 91.9%, respectively.
To Conclude
SYM trades at a discount relative to its industry based on price-to-sales. The company’s liquidity position based on the current ratio remains healthy.
Since the stock has risen a whopping 57.7% in the past year, it may undergo a correction soon going forward in the upcoming fiscal second quarter results by reports indicating weak margin performance.
Moreover, SYM does not seem poised for an earnings beat. Per our quantitative model, the combination of two key elements — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — increases the odds of a positive earnings surprise. But that is not the case with SYM, as it has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
Given this backdrop, it may not be a bad idea to wait for this stock to undergo some correction and offer a better entry point rather than rushing to purchase the stock before earnings.
Stocks That Warrant a Look
Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.
The GEO Group GEO: The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $603.8 million, indicating a year-over-year decline of less than 1%. For earnings, the consensus mark is pegged at 19 cents per share, suggesting a 13.6% decrease from the year-ago quarter’s actual. The company has an average surprise of 27%.
GEO has an Earnings ESP of +3.90% and currently sports a Zacks Rank of 1. The company is scheduled to declare its first-quarter results on May 7. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Marathon Digital MARA: The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $193.9 million, indicating year-over-year growth of more than 100%. For earnings, the consensus mark is pegged at 2 cents per share, suggesting an increase of more than 100% from the year-ago quarter. The company has an average negative surprise of 107.1%.
MARA presently has an Earnings ESP of +125.00% and a Zacks Rank of 3. The company is scheduled to declare its first-quarter results on May 9.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Geo Group Inc (The) (GEO) : Free Stock Analysis Report
Marathon Digital Holdings, Inc. (MARA) : Free Stock Analysis Report
Symbotic Inc. (SYM) : Free Stock Analysis Report
