Mobileye Signals Recovery with Strong Quarterly Revenue
Leading driver assistance systems provider Mobileye Global (NASDAQ:MBLY) today reported quarterly revenues that exceeded expectations, indicating a recovery in demand from automotive manufacturers. The company's revenue of $486 million surpassed the estimated $472.1 million, suggesting that automakers have overcome their previous hesitations regarding inventory increases.
Recently, car manufacturers around the world have been cautious about increasing inventories due to declining consumer spending. This had led to production disruptions and consequently a decrease in orders for Mobileye's chips. However, company executives expressed an optimistic outlook during the post-earnings conference call, stating their belief that inventory issues experienced in the first half of 2024 would positively affect 2025.
Despite the overall positive performance, Mobileye CEO Amnon Shashua revealed that shipments to China, particularly to domestic automakers, fell by more than 50% during the quarter. Challenges faced by the company’s larger customers in the Chinese market impacted Mobileye’s volumes. Executives forecast that this downward trend will continue into next year.
Concerns were also raised regarding Mobileye's capacity to ramp up production of its advanced SuperVision system following a key customer, Zeekr, transitioning to its in-house solution. Nevertheless, the company expects growth for SuperVision due to new launches with Western automakers such as Porsche (ETR:P911_p) and Volkswagen (ETR:VOWG_p).
In light of the latest financial results, Mobileye has revised its full-year revenue estimate to a range of $1.62 billion to $1.66 billion, slightly narrowing the previous range of $1.60 billion to $1.68 billion. According to data compiled by LSEG, analysts have set their annual revenue expectation at $1.65 billion.
Mobileye met expectations with an adjusted earnings per share of 10 cents for the third quarter. The company's financial performance reflects a degree of recovery in the automotive sector and offers a positive outlook for the upcoming year.