Shares of advanced driver assistance systems (ADAS) provider Mobileye Global (NASDAQ:MBLY) tanked nearly 28% in the early session today after the company’s preliminary financial results and updated outlook disappointed investors.
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For Fiscal Year 2023, revenue is now anticipated to be between $2,076 million and $2,080 million. Adjusted operating income for the year is seen landing between $687 million and $693 million compared to the previous outlook of $648 million to $665 million. Further, revenue for the fourth quarter is anticipated to be between $634 million and $638 million. Adjusted operating income for the quarter is anticipated to fall between $241 million and $247 million versus the prior anticipated range of $202 million to $219 million.
The company estimates excess EyeQ SoCs inventory with its customers to be 6 to 7 million units. The company’s customers built up excess inventory amid the supply chain challenges of 2021 and 2022. Now, while this excess inventory gets used up, Mobileye’s Q1 revenue is expected to be substantially lower as compared to the first quarter of 2023.
For Fiscal Year 2024, MBLY anticipates total revenue of $1,830 million to $1,960 million. EyeQ shipments for the year are now expected to be between 31 and 33 million units versus the 37 million units shipped in 2023.
Moreover, revenue in the first quarter is expected to drop by nearly 50% compared to the $458 million figure in Q1 2023. The company also expects an impact on revenue for the rest of the year. Inventory levels with customers are anticipated to normalize by the end of this year.
In sync, the company’s profitability is also expected to take a hit. Its operating loss for the first quarter is expected to be between $257 million and $242 million. For Fiscal Year 2024, the operating loss is now expected to hover between $468 million and $378 million. Further details are awaited from Professor Amnon Shashua, Mobileye’s CEO, at a webcast on January 9.
What is the Forecast for MBLY?
Overall, the Street has a Strong Buy consensus rating on Mobileye, and the average MBLY price target of $50.09 points to a 26.1% potential upside in the stock. Today’s value erosion has wiped off nearly $9 billion from the company’s market capitalization.
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