Israeli advanced driving assistance systems (ADAS) company Mobileye Global Inc. (Nasdaq: MBLY) has reported mixed financial results for the first quarter of 2024. The company reported non-GAAP adjusted diluted earnings per share of minus $0.07 on revenue of $231.6 million, down 48% from $458 million in the corresponding quarter of 2023.
The results were in line with the profit warning issued at the start of the year when Mobileye, owned by Intel Corp. and led by CEO Prof. Amnon Shashua, said it expected revenue to be down 50% in the first quarter of 2024 to $229 million due to customers' excess inventory, having previously overstocked due to supply chain concerns. Following the announcement, Mobileye's share price fell 25% in one day but it has since risen by more than 30%. Yesterday the share price rose 2.27% to $31.12, giving a market cap of $25.09 billion, and today the share price opened 4.80% lower at $29.63, giving a market cap of $24 billion.
Mobileye declined to provide guidance for the second quarter but analysts see revenue jumping to $433.2 million with non-GAAP earnings per share of $0.08.
Mobileye itself has reiterated its 2024 revenue guidance of $1.83-1.96 billion and operational profit of $270-360 million. Analysts predict earnings per share of $0.39.
Shashua said, "The financial results in the first quarter reflect a supply chain reset as the excess inventory held by our customers is consumed. We are encouraged that the inventory draw-down and associated recovery in revenue appears to be on-track to what we laid out in January. From a business development and strategy perspective, Q1 was very productive in generating traction across our multiple waves of future growth. In base and cloud-enhanced ADAS, we achieved a record level of design wins in terms of future projected volume, in part due to new features and technology embedded in the EyeQ6L product. Our SuperVision and Chauffeur development pipeline expanded during the quarter, reflecting 1) the key announcement of the Volkswagen Group design win and 2) an increasing consensus across automotive OEMs that eyes-on / hands-off systems (on a scalable path to eyes-off) are critical features necessary for mainstream vehicles of the near future. For Mobileye Drive, we continue to build an eco-system of vehicle manufacturers and network operators that view our self-driving system as the enabler of more convenient and efficient modes of transportation."
He added, "Our main focus in 2024 is to successfully execute our current advanced programs and to convert the unprecedented opportunity set currently on the table into series production awards."
Published by Globes, Israel business news - en.globes.co.il - on April 25, 2024.
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