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Mobileye Global Inc. (MBLY - Free Report) reported second-quarter 2024 adjusted earnings per share of 9 cents, which beat the Zacks Consensus Estimate of 8 cents. However, earnings came in lower than 17 cents per share recorded in the year-ago quarter.
Total revenues amounted to $439 million, beating the Zacks Consensus Estimate of $427 million. However, the metric was down 3% year over year. This was primarily due to a 10% reduction in EyeQ SoC-related revenues. The decrease stemmed from Tier 1 customers using up their excess inventory to meet demand in the second quarter of 2024. However, this drop was somewhat mitigated by a notable increase in SuperVision-related revenues on a year-over-year basis.
In the second quarter, Mobileye’s gross margin decreased 173 basis points year over year. The decline was mainly due to a higher percentage of revenues from SuperVision, which was partially balanced by lower costs from amortization of intangible assets relative to revenues. Also, the adjusted gross margin declined 256 basis points year over year amid the increased proportion of revenues from SuperVision.
Adjusted operating margin declined to 18% compared with the year-ago quarter's 31%. The decrease was attributed to higher operating expenses on a similar revenue base and a lower adjusted gross margin.
MBLY had cash and cash equivalents of $1.2 billion as of Jun 29, 2024, compared to $1.21 million as of Dec 30, 2023. Operating cash flow for the year (ended Jun 29, 2024) was $30 million. Capex was $24 million during the same time frame.
Mobileye has slashed its sales and profit guidance due to reduced expectations for EyeQ and SuperVision shipments for the remainder of 2024. For full-year 2024, Mobileye now estimates revenues in the range of $1.6-$1.68 billion, down from $1.83-$1.96 billion guided earlier. It expects operating loss in the band of $580-$531 million, wider than the prior guided range of $468-$378 million. Adjusted operating income is estimated in the band of $152-$201 million, down from $270-$360 million guided earlier.
Zacks Rank and Key Picks
Mobileye currently carries a Zacks Rank #4 (Sell).
The Zacks Consensus Estimate for HMC’s fiscal 2025 sales suggests year-over-year growth of 0.73%. EPS estimates for fiscal 2025 have improved 5 cents in the past 30 days. EPS estimates for fiscal 2026 have improved 4 cents in the past 30 days.
The consensus estimate for SZKMY’s fiscal 2025 earnings suggests year-over-year growth of 2.1%. EPS estimates for fiscal 2025 and 2026 have improved 38 cents and 15 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.1% and 9.9%, respectively. EPS estimates for 2024 and 2025 have improved by 19 cents and 29 cents, respectively, in the past 30 days.
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Mobileye (MBLY) Q2 Earnings Top, 2024 Sales & Profit View Cut
Mobileye Global Inc. (MBLY - Free Report) reported second-quarter 2024 adjusted earnings per share of 9 cents, which beat the Zacks Consensus Estimate of 8 cents. However, earnings came in lower than 17 cents per share recorded in the year-ago quarter.
Total revenues amounted to $439 million, beating the Zacks Consensus Estimate of $427 million. However, the metric was down 3% year over year. This was primarily due to a 10% reduction in EyeQ SoC-related revenues. The decrease stemmed from Tier 1 customers using up their excess inventory to meet demand in the second quarter of 2024. However, this drop was somewhat mitigated by a notable increase in SuperVision-related revenues on a year-over-year basis.
In the second quarter, Mobileye’s gross margin decreased 173 basis points year over year. The decline was mainly due to a higher percentage of revenues from SuperVision, which was partially balanced by lower costs from amortization of intangible assets relative to revenues. Also, the adjusted gross margin declined 256 basis points year over year amid the increased proportion of revenues from SuperVision.
Adjusted operating margin declined to 18% compared with the year-ago quarter's 31%. The decrease was attributed to higher operating expenses on a similar revenue base and a lower adjusted gross margin.
MBLY had cash and cash equivalents of $1.2 billion as of Jun 29, 2024, compared to $1.21 million as of Dec 30, 2023. Operating cash flow for the year (ended Jun 29, 2024) was $30 million. Capex was $24 million during the same time frame.
Mobileye has slashed its sales and profit guidance due to reduced expectations for EyeQ and SuperVision shipments for the remainder of 2024. For full-year 2024, Mobileye now estimates revenues in the range of $1.6-$1.68 billion, down from $1.83-$1.96 billion guided earlier. It expects operating loss in the band of $580-$531 million, wider than the prior guided range of $468-$378 million. Adjusted operating income is estimated in the band of $152-$201 million, down from $270-$360 million guided earlier.
Zacks Rank and Key Picks
Mobileye currently carries a Zacks Rank #4 (Sell).
Better-ranked players in the auto space include Honda (HMC - Free Report) , Suzuki Motor Corporation (SZKMY - Free Report) and BYD Co Ltd. (BYDDY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HMC’s fiscal 2025 sales suggests year-over-year growth of 0.73%. EPS estimates for fiscal 2025 have improved 5 cents in the past 30 days. EPS estimates for fiscal 2026 have improved 4 cents in the past 30 days.
The consensus estimate for SZKMY’s fiscal 2025 earnings suggests year-over-year growth of 2.1%. EPS estimates for fiscal 2025 and 2026 have improved 38 cents and 15 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.1% and 9.9%, respectively. EPS estimates for 2024 and 2025 have improved by 19 cents and 29 cents, respectively, in the past 30 days.