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Mobileye (MBLY) saw its shares plummet 20% Thursday after the autonomous driving company reduced its revenue guidance for the full fiscal 2024, missing consensus estimates.
For Q2, Mobileye reported earnings per share (EPS) of $0.09, surpassing the analysts’ estimate of $0.08. The company’s revenue for the quarter was $439 million, also above the consensus projection of $438.08 million.
Mobileye’s adjusted operating income was $79 million, exceeding the estimated $56.2 million.
The company reported an adjusted gross margin of 69%, beating the consensus estimate of 66.6%. The adjusted operating margin was 18%, also higher than the 13.1% expected by analysts.
Going forward, Mobileye now expects revenue to be between $1.60 billion and $1.68 billion for the full year, down from the previous guidance of $1.83 billion to $1.96 billion and below the analysts’ estimate of $1.88 billion.
The guidance cut comes due to the macro landscape in China.
“We’d note that weakness in China has been called out by other companies in the auto sector that have reported so far,” BofA analysts commented.
They reiterated an Underperform rating on MBLY, citing a “meaningful uncertainty on the growth and profit outlook for the company, particularly considering the company’s latest guidance and macro environment in China.”
Along with the earnings release, Mobileye President and CEO Prof. Amnon Shashua said in a statement:
“We are glad to report that the excess inventory at Tier 1 customers that meaningfully impacted our business in the first half of 2024 appears to be almost fully behind us, but a more significant than anticipated softening of business conditions in China (affecting the industry as a whole) is expected to lead to challenges in the second half.”
“Our main focus for the remainder of 2024 is to successfully execute our current advanced programs and to convert the unprecedented opportunity set we are currently pursuing into series production awards.”
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