Yahoo Finanzas Mobileye Global Inc. (MBLY) Q1 2024 Earnings: Significant Miss Against Analyst Projections
Revenue: Reported at $239 million for Q1 2024, a decrease of 48% year-over-year, falling short of estimates of $231.56 million.
Net Income: Recorded a loss of $218 million in Q1 2024, significantly below the estimated loss of $52.40 million.
Earnings Per Share (EPS): Basic and diluted EPS stood at -$0.27, below the estimated EPS of -$0.06.
Gross Margin: GAAP gross margin was 23% for Q1 2024, a substantial decrease from 45% in Q1 2023.
Operating Income: Reported a loss of $238 million, reflecting a worsening from an operating loss of $81 million in the previous year.
Adjusted Operating Income: Non-GAAP adjusted operating loss was $65 million, contrasting sharply with an adjusted operating income of $124 million in Q1 2023.
Financial Guidance for 2024: Full-year revenue expectations remain unchanged, ranging from $1,830 million to $1,960 million.
On April 25, 2024, Mobileye Global Inc. (NASDAQ:MBLY) disclosed its financial results for the first quarter ended March 30, 2024, through its 8-K filing. The company, a leader in autonomous driving and advanced driver-assistance systems, reported a significant decline in revenue and earnings, falling short of analyst expectations for the quarter.
Financial Performance Overview
For Q1 2024, Mobileye reported revenue of $239 million, a stark decrease of 48% year-over-year, compared to $458 million in Q1 2023. This decline was significantly below the estimated revenue of $231.56 million. The gross profit plummeted by 74% to $54 million from $207 million in the previous year, with gross margin reducing from 45% to 23%. The operating loss widened dramatically to $238 million, marking a 194% increase from an $81 million loss in Q1 2023. Net income also saw a substantial decline, with a loss of $218 million compared to a $79 million loss year-over-year, resulting in a basic and diluted EPS of -$0.27, far below the estimated EPS of -$0.06.
Strategic Developments and Challenges
Despite the financial downturn, Mobileye's CEO, Prof. Amnon Shashua, highlighted strategic progress in the quarter. The company secured a record level of design wins for its base and cloud-enhanced ADAS, driven by new features in the EyeQ6L product. Additionally, its SuperVisionTM and ChauffeurTM development pipelines expanded, notably with a significant design win from the Volkswagen Group. Mobileye continues to build an ecosystem for its Mobileye DriveTM, aiming to enhance transportation efficiency through autonomous technology.
Balance Sheet and Cash Flow Insights
Mobileye's balance sheet remains robust with total assets of $15.342 billion. Cash and cash equivalents stood at $1.223 billion. The company managed a net cash provided by operating activities of $40 million, despite the increased operating loss. However, the cash flow from investing activities showed a net use of $22 million, primarily for the purchase of property and equipment.
Outlook and Forward Guidance
Looking ahead, Mobileye reaffirmed its full-year 2024 revenue guidance, projecting it to be between $1.83 billion and $1.96 billion. The anticipated operating loss is expected to range from $378 million to $468 million, with adjusted operating income projected between $270 million and $360 million. These figures reflect the company's strategic initiatives to mitigate current challenges and leverage growth opportunities in the evolving automotive and mobility sectors.
Investor and Analyst Perspectives
The first quarter results have undoubtedly put pressure on Mobileye, as the significant deviations from analyst expectations might concern investors. The challenges in the supply chain and the broader economic environment have impacted performance, yet the strategic wins in technology development and partnerships could set the stage for recovery and growth in subsequent quarters.
Mobileye's ability to navigate through these headwinds and capitalize on its technological advancements will be crucial for its financial recovery and sustained growth in the competitive landscape of autonomous driving technologies.
Conclusion
As Mobileye continues to innovate and expand its market presence, investors and stakeholders will be closely monitoring its ability to convert strategic initiatives into financial success. The coming quarters will be pivotal in assessing the effectiveness of Mobileye's strategies in overcoming current challenges and achieving long-term profitability and market leadership.
Explore the complete 8-K earnings release (here) from Mobileye Global Inc for further details.
This article first appeared on GuruFocus.
