Mobileye Global, a maker of technology for advanced driver-assistance systems and self-driving cars, on Thursday beat analyst estimates for the first quarter. But the company lowered its full-year outlook on weakening electric vehicle sales in China. MBLY stock plunged on the news.
The Jerusalem-based company earned an adjusted 14 cents a share on sales of $458 million in the March quarter. Analysts polled by FactSet had expected earnings of 12 cents a share on sales of $455 million. On a year-over-year basis, Mobileye earnings fell 11% while sales increased 16%.
For the full year, Mobileye now expects sales of $2.09 billion, based on the midpoint of its outlook. However, Wall Street was projecting $2.25 billion in sales in 2023.
"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," Chief Executive Amnon Shashua said in a news release.
He added, "We see this as a temporary issue that should not impact the potential for this business to accelerate our top- and bottom-line growth as it scales, diversifies, and becomes more predictable with additional OEMs (original equipment manufacturers) and vehicle launches."
MBLY Stock Plummets After Warning
On the stock market today, MBLY stock plummeted 16.1% to close at 36.14.
Mobileye is a leader in camera-based automotive vision systems and artificial intelligence for autonomous driving and vehicle safety features.
The Mobileye driver-assistance features found on many of today's new vehicles include forward collision warning, automatic emergency braking, lane departure warning and adaptive cruise control. To date, more than 125 million vehicles worldwide have been built with Mobileye technology inside.
MBLY Stock Is On 6 IBD Lists
MBLY stock began trading last October with its initial public offering priced at $21 a share. Chipmaker Intel spun off Mobileye but retains majority ownership.
Mobileye is on a whopping six IBD stock lists. MBLY stock is on the IBD 50, Big Cap 20, IPO Leaders, Tech Leaders, Global Leaders and Stock Spotlight lists.
The Israeli company has an IBD Composite Rating of 98 out of 99, according to IBD Stock Checkup.
STMicro Delivers Beat-And-Raise Report
Elsewhere Thursday, European chipmaker STMicroelectronics posted a beat-and-raise quarterly report. STMicro gets a large portion of its revenue from the automotive market.
STMicro earned $1.10 a share on sales of $4.25 billion in the first quarter. Analysts had been expecting earnings of 98 cents a share on sales of $4.15 billion. On a year-over-year basis, STMicro earnings rose 39% while sales increased 20%.
Also, STMicro forecast second-quarter revenue of $4.28 billion, up 11.5%. Wall Street had projected $4.24 billion.
For the full year, STMicro is targeting sales of $17.4 billion, based on the midpoint of its guidance. Analysts had been expecting $17.2 billion in 2023 sales.
But STM stock slid 7.4% to 42.84 on Thursday.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
