Shares of Mobileye Global (MBLY +0.13%) were trading sharply lower on Thursday, after the company cut its full-year revenue guidance on concerns about demand in China.
As of 10:30 a.m. ET, Mobileye's shares were down about 20.3% from Wednesday's closing price.
A Polestar 4 equipped with Mobileye SuperVision. Mobileye now expects SuperVision shipments to come in lower than expected in the second half of 2024. Image source: Mobileye Global.
Earnings beat estimates but the outlook isn't rosy
At first glance, Mobileye's second-quarter earnings were decent. The company reported adjusted earnings per share of $0.09 on revenue of $439 million. Both numbers were down from a year ago, but both were above Wall Street's consensus estimates.
Also good: CEO Amnon Shashua said that some of the company's big customers had worked through excess inventory and were placing orders again.
But the outlook for the rest of 2024 isn't so great. Mobileye pointed to three near-term challenges:
- Several big global automakers that buy Mobileye's products have recently cut their production estimates for the second half of the year.
- Orders from Chinese automakers for later in 2024 are coming in lower than expected.
- A customer has delayed the global launch of a key high-volume product that incorporates Mobileye's SuperVision system.
Long story short: Shipments of Mobileye's EyeQ chips and SuperVision systems will be lower than it had previously expected in the second half of 2024.
NASDAQ: MBLY
Key Data Points
Lower shipments will lead to lower-than-expected revenue
Those reduced expectations for shipments led Mobileye to cut its full-year revenue guidance range. It now expects full-year revenue between $1.6 billion and $1.68 billion, down about 13% from between $1.83 billion and $1.96 billion in its earlier forecast. And that's why the stock was down sharply on Thursday morning.
