Mobileye Global, a manufacturer of advanced driver-assistance and self-driving car technology, beat analyst expectations for the first-quarter on Thursday. The company, however, lowered its outlook for the full year due to a decline in electric vehicle sales. MBLY shares plunged during early trading.
Jerusalem-based company made an adjusted 14 cents per share on sales of 458 million dollars in the quarter ending March. FactSet polled analysts who expected earnings of 12c per share on sales $455m. Mobileye's earnings decreased 11% year-over-year, while sales grew 16%.
Mobileye expects to sell $2.09 billion in the entire year based on its midpoint. Wall Street projected $2.25 billion of sales for 2023.
Amnon Shashua, Chief Executive of SuperVision, said in a press release that due to the lowered EV demand in China we reduced our shipment forecast for 2023. This has a negative impact on our financial guidance.
He said, "We view this as a short-term issue which should not affect the potential of this business to grow our top and bottom line as it scales and diversifies and becomes more predictible with additional OEMs and vehicle launches."
MBLY Stocks Plummet After Warning
MBLY shares fell 15.6% in premarket trading today to 36.35.
Mobileye, a leading provider of artificial intelligence and camera-based automotive systems for autonomous driving features and vehicle safety, is the leader in this field.
Mobileye's driver-assistance systems are found in many new cars today. These include adaptive cruise control, lane departure alert, and automatic emergency braking. More than 125 millions vehicles have been produced with Mobileye inside.
MBLY Stock Is on 6 IBD lists
MBLY began trading in October last year with an initial public offering of $21 per share. Mobileye was spun off by Intel (INTC), but Intel retains the majority of ownership.
Mobileye appears on six IBD lists. MBLY is listed on six IBD stock lists: IBD 50; Big Cap 20; Tech Leaders; Global Leaders; and Stock Spotlight.
According to IBD, the Israeli company's composite rating is 98 out 99.
STMicro Delivers Beat-And-Raise Report
STMicroelectronics, a European chipmaker, also released a quarterly report on Thursday. STMicro's revenue is largely derived from the automotive industry.
STMicro made $1.10 per share in the first quarter on sales of $4.25billion. Analysts expected earnings of 98c per share on sales $4.15billion. STMicro's earnings increased 39% year-over-year, while sales grew 20%.
STMicro also forecast a second-quarter revenue increase of 11.5%, to $4.28 billion. Wall Street expected $4.24 billion.
STMicro expects to reach $17.4 Billion in sales for the entire year. This is based on its midpoint guidance. Analysts were expecting $17.2 billion of sales in 2023.
STM shares fell 7.1% in the early trading to 43.