Mobileye’s quarterly revenue beats estimates, signaling demand recovery
2:27 pm Thursday, October 31st, 2024
(Reuters) -Driving assistance systems supplier Mobileye Global reported better-than-expected quarterly revenue on Thursday, signaling a recovery in demand from automakers who have had a glut of their sensors and related hardware.
Automakers globally have refrained from augmenting their inventories over the past few quarters as weak consumer spending led to production cuts and, therefore, fewer orders for Mobileye’s chips.
“We’d expect 2025 to benefit from resolution of the inventory digestion that happened in the first half of 2024,” company executives said on a post-earnings conference call.
However, shipment volumes to China — primarily to domestic automakers — fell over 50% in the quarter, Mobileye CEO Amnon Shashua said on the call.
Many of the company’s larger customers have been facing challenges in China, impacting volumes for Mobileye, executives said, and they expect this trend to continue into the next year.
There have been concerns about Mobileye’s ability to ramp up volumes of its more advanced SuperVision system after Zeekr, a key customer, replaced it with its in-house solution.
Notwithstanding, SuperVision is expected to return to growth, led by the launch on new platforms with Western automakers, including Porsche and Volkswagen.
Mobileye tightened its full-year revenue forecast to between $1.62 billion and $1.66 billion, from a previous range of $1.60 billion to $1.68 billion.
Analysts expect annual revenue of $1.65 billion, according to data compiled by LSEG.
On an adjusted basis, Mobileye earned 10 cents per share in the third quarter, in line with estimates.
The company reported revenue of $486 million, ahead of estimates of $472.1 million.
(Reporting by Rishi Kant in Bengaluru; Editing by Shounak Dasgupta and Alan Barona)
