Mobileye Q3 Earnings: Revenue And EPS Beat, $2.7 Billion Impairment Hit, CEO Outlines Strategic Goals

Mobileye Global Inc (NASDAQ: MBLY) reported a fiscal third-quarter 2024 revenue decline of 8% year-on-year to $486.00 million, beating the analyst consensus estimate of $472.14 million. 

Adjusted EPS of $0.10 beat the analyst consensus estimate of $0.09.  The stock climbed after the print.

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EyeQ and SuperVision revenue was $457 million vs. $507 million a year ago. 

The Average System Price was $53.3, down from $53.8 in the prior year. The number of systems shipped fell to 8.6 million, down from 9.4 million a year ago.

Gross margin declined by 256 bps to 49%, while adjusted gross margin decreased by 95 bps to 68%, primarily due to the increase in revenue attributable to SuperVision. 

The adjusted operating margin was 16%, down from 34% year over year, primarily due to the lower gross margin. Mobileye held $1.29 billion in cash and equivalents as of September 28, 2024. 

Mobileye generated a third-quarter operating cash flow of $126 million. However, it took a $2.7 billion goodwill impairment charge hit in the quarter, which originally resulted from Intel’s acquisition of Mobileye in 2017.

“We continue to focus on our core strategic objectives for the next two years, which include maintaining and growing our ADAS position outside of domestic China, deepening the relationship with our top 10 customers through advanced product design wins, and executing our EyeQTM6-based set of advanced products that leverage historic Mobileye competitive advantages augmented by novel AI approaches,” said Mobileye President and CEO Prof. Amnon Shashua.

FY24 Outlook: The company revised its revenue outlook to $1.62 billion—$1.66 billion (prior $1.60 billion—$1.68 billion) vs. the $1.65 billion estimate and adjusted operating income to $163 million—$190 million (prior $152 million—$201 million).

Price Action: MBLY stock is up 8.62% at $13.49 premarket at the last check Thursday.

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