Autonomous Driving Tech Provider Mobileye CEO Credits SuperVision Roll-out and New Partnerships for Stellar Q3 Earnings, Stock Gains

Mobileye Global Inc MBLY reported a third-quarter FY23 revenue growth of 18% year-on-year to $530 million, beating the consensus of $527.8 million. Adjusted EPS of $0.22 beat the consensus of $0.17. 

EyeQ and SuperVision revenue was $507 million vs $432 million a year ago. The Average System Price was $53.8, up from $53.0 in the prior year. 

Gross margin expanded by 310 bps to 51%, while adjusted gross margin decreased by 472 bps to 69% due to the higher cost of its EyeQ chip. 

Adjusted operating margin increased by 256 bps to 34%. Mobileye held $1.19 billion in cash and equivalents. 

CEO Prof. Amnon Shashua attributed the Q3 results to the operating leverage. He also cited very positive consumer and media feedback to the August roll-out of the SuperVision navigate on pilot software to Zeekr vehicles, contributing to conversions with Polestar and FAW during the quarter along with continued progress with the balance of the 9 core OEM prospects and new interest from an additional wave of global automakers. 

Outlook: Mobileye expects FY23 revenue of $2.065 billion - $2.090 billion (prior 2.065 billion - 2.114 billion) vs. consensus $2.1 billion.

Price Action: MBLY shares traded higher by 3.03% at $34.99 premarket on the last check Thursday.