The share price of Israeli advanced driving assistance systems (ADAS) company Mobileye Global Inc. (Nasdaq: MBLY) is falling sharply in premarket trading on Wall Street after disappointing the market by cutting its guidance. The company, led by its CEO and cofounder Amnon Shashua, sees annual revenue of $1.6-1.68 billion, down from its previous forecast of $1.83-1.96 billion.
Mobileye also predicts a higher than expected operating loss of $531-580 million and adjusted operating profit of $152-201 million, down from the previous guidance of $270-360 million. The revised guidance reflects a 13% fall in revenue in the mid-range of the forecast, and falls of 31% and 44% respectively in the operating loss and adjusted operating profit.
In the second quarter of 2024, Mobileye’s revenue was $439 million, down 3% from the corresponding quarter and higher than the analysts’ forecast. GAAP net loss more than tripled to $86 million, while non-GAAP net profit was $76 million, compared with $135 million in the corresponding quarter of 2023. Earnings per share was $0.09, higher than the analysts’ forecast of $0.07.
Mobileye’s share price has been in a downward spiral since the start of the year and has lost 51.5%of its value. The share price closed at $21 yesterday, giving a market cap of $16.9 billion - its value at the time of its IPO 18 months ago. For most of the time since then it has been Israel’s most valuable company but it was recently surpassed by Check Point Software Technologies Ltd. (Nasdaq: CHKP) and Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA). In premarket trading Mobileye’s share price is down a further 9.5% at $19.01.
According to "The Wall Street Journal" most analysts covering Mobileye give the share a positive recommendation and the average price target is $35.80, 70% above the current price on Nasdaq.
Mobileye’s controlling shareholder Intel, which has a 98.7% stake in the Israeli company, will publish its financial results later today and expectations are that it will announce the layoff of thousands of employees.
Published by Globes, Israel business news - en.globes.co.il - on August 1, 2024.
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