Why the token stock skyrocketed today

Symbolic (Sym 18.37%) shares posted explosive gains in Thursday trading. The robotics specialist’s share price ended the session up 18.4% and rose as much as 21.5% earlier in the trading day.

Symbotic today issued a press release announcing that it has entered into contractual agreements with Walmex — Walmartdivision for operations in Mexico and Central America. Through the new deal, Symbotic will deploy its automation systems in two distribution centers in Mexico.

Symbotic’s Walmex earnings look promising

The recent announcement that Walmex will adopt new automation systems at two units appears to have eased investor concerns that Symbotic’s growth engine is weakening. Contracts with Walmart account for the bulk of Symbotic’s revenue, and the robotics specialist’s stock has faced pressure amid concerns about weakening demand.

The token’s shares fell in late July after the company released results for the fourth quarter of its latest fiscal year, which ended on July 29. big sales for stock. Even with today’s valuation increase, Symbotic’s stock price is still down about 46% over the course of 2024 trading.

Symbotic still has great potential for international expansion

With its quarterly report in late July, Symbotic guided for next quarter sales to be between $455 million and $475 million. While the midpoint of that guidance indicated annual sales growth of about 19%, the midpoint target also suggested a sequential quarterly decline of about 5.5% on sales of about 491.9 million dollars it recorded in the fiscal third quarter.

With the benefit of a new contract win, Symbotic’s current quarter sales are likely to significantly exceed the guidance management issued with the latest update. More importantly, the new contract signals that Walmart may still be in the early stages of integrating Symbotic technologies into its warehouses and distribution centers.