Mobileye Global Tops Q2 Expectations, Expresses Bullishness On Volkswagen Group Partnership

Mobileye Global Inc MBLY reported a second-quarter FY23 revenue decline of 1% year-on-year to $454 million, beating the consensus of $451.7 million.

EyeQ and SuperVision revenue was $430 million vs $441 million a year ago. The Average System Price was $51.7, up from $52.0 in the prior year. 

Gross margin declined by 44 bps to 49%, while adjusted gross margin decreased by 299 bps to 72% due to the higher cost of its EyeQ chip. Adjusted operating margin declined by 884 bps to 31%.

Non-GAAP EPS of $0.17 beat the consensus of $0.12. Mobileye held $1.14 billion in cash and equivalents. 

CEO Prof. Amnon Shashua. "Future business highlights of the quarter included tangible evidence of the depth of our relationship with VW Group and an expansion of meaningful engagements for our advanced portfolio to 9 large OEMs. VW Group's engagement across our entire product portfolio is quite encouraging as it underlines the scalability and flexibility of Mobileye's technology platform and is a template we are pursuing with other key customers."

Outlook: Mobileye reiterated the FY23 revenue forecast of $2.065 billion - $2.114 billion (consensus $2.1 billion).

Price Action: MBLY shares traded lower by 4.28% at $38.71 on the last check Thursday.