Why Mobileye Global (MBLY) Stock Is Plunging Today

  • Mobileye Global Inc (NASDAQ: MBLY) reported first-quarter FY23 revenue growth of 16% year-on-year to $458 million, beating the consensus of $456.72 million.

  • EyeQ SoC-related revenue grew 11% in the quarter due to volume and ASP growth.

  • The Average System Price was $53.9 in Q1, up from $51.0 in the prior year, driven primarily by an increased mix of advanced products.

  • Gross margin expanded by 53 bps to 45%, while adjusted gross margin decreased by 571 bps to 71% due to the higher cost of its EyeQ chip which translated into higher prices for customers on a zero-margin basis. Adjusted operating margin declined by 921 bps to 27%.

  • Non-GAAP EPS of $0.14 beat the consensus of $0.12.

  • Mobileye held $1.16 billion in cash and equivalents. Future business backlog continues to grow, with FY23 ADAS design wins projected to exceed revenue of $6.7 billion.

  • CEO Prof. Amnon Shashua said, “Due to a number of headwinds lowering EV demand in China, we have reduced our 2023 SuperVision shipment forecast, which is negatively impacting our annual financial guidance as explained below.”

  • Outlook: Mobileye slashed the FY23 revenue forecast to $2.065 billion – $2.114 billion, down from the prior $2.192 billion – $2.282 billion (consensus $2.25 billion).

  • Price Action: MBLY shares traded lower by 20.20% at $34.36 on the last check Thursday.

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This article Why Mobileye Global (MBLY) Stock Is Plunging Today originally appeared on Benzinga.com


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