What: Driver-assistance technology company Mobileye (NYSE:MBLY) reported fourth-quarter results on Wednesday morning. The stock pulled back as much as 14% shortly after the market opened in response to the quarterly update, but is down just 2% at the time of this writing.
So what: Revenue and earnings per share were both better than analysts expected. On average, they forecasted for revenue and non-GAAP EPS to be $70.8 million and $0.14, respectively. Actual results were $71.8 million and $0.15. But despite the company's having surpassed expectations for financial results for the quarter, the market seems to be honing in on Mobileye's guidance, which appears to be weaker than thought.
Mobileye projects revenue and non-GAAP EPS for the full year to be in the ranges of $336 million-$340 million and $0.68-$0.69, respectively, according to management during the earnings call. This guidance compares to analysts' estimates for full-year non-GAAP EPS and revenue of $0.70 and $342 million, slightly ahead of Mobileye's guidance range.
Now what: Despite Mobileye's weaker guidance, the company is optimistic about the future. Investors should also keep in mind that the demand for its products doesn't appear anemic by any means. Mobileye's revenue guidance for 2016 represents 40% year-over-year growth.
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