Mobileye slumps after cutting 2024 guidance

Israeli Advanced Driving Assistance Systems (ADAS) stock price Mobily International Company (Nasdaq: MBLY) is trading sharply lower in premarket trading on Wall Street after disappointing the market with a lowered outlook. The company, led by CEO and co-founder Amon Shashua, expects annual revenue of $1.6 billion to $1.68 billion, down from its previous forecast of $1.83 billion to $1.96 billion.

Mobileye also expects higher-than-expected operating losses of $531 million to $580 million and adjusted operating earnings of $152 million to $201 million, down from previous guidance of $270 million to $360 million. The revised guidance reflects a 13% decline in revenue in the mid-range of expectations, and a 31% and 44% decline in operating losses and adjusted operating earnings, respectively.

In the second quarter of 2024, Mobileye reported revenue of $439 million, down 3% from the prior-year quarter and above analyst expectations. GAAP net loss more than tripled to $86 million, while non-GAAP net income was $76 million, compared to $135 million in the prior-year quarter of 2023. Earnings per share were $0.09, above analyst expectations of $0.07.

Mobileye’s stock has been on a downward spiral since the start of the year, losing 51.5% of its value. The stock closed at $21 yesterday, giving it a market value of $16.9 billion — the same as when it went public 18 months ago. For most of that time, it was Israel’s most valuable company, but it was recently overtaken by another. Check Point Software Technologies Co., Ltd. (NASDAQ: CHKP) And Teva Pharmaceutical Industries Co., Ltd. (New York Stock Exchange: Tifa; level: TifaIn pre-market trading, Mobileye shares fell another 9.5% to $19.01.

According to the Wall Street Journal, most analysts covering Mobily stock give a positive recommendation for the stock, and the average target price is $35.80, which is 70% higher than the current price on Nasdaq.

Intel, Mobileye’s controlling shareholder and 98.7% owner, will release its financial results later today and is expected to announce thousands of layoffs.

This article was published in Globes, Israeli Business News – en.globes.co.il – on August 1, 2024.

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