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Mobileye (MBLY) Q3 Earnings Top, Sales Miss by a Slight Margin
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Mobileye Global Inc. (MBLY - Free Report) registered third-quarter 2023 adjusted earnings per share of 22 cents, outpacing the Zacks Consensus Estimate of 17 cents. The bottom line also rose from 15 cents per share reported in the year-ago quarter. Total revenues amounted to $530 million, up 17.7% year over year, thanks to growth in both volume and average selling prices of EyeQ chip-related revenues. The top line, however, narrowly missed the Zacks Consensus Estimate of $531 million.
Mobileye Global Inc. Price, Consensus and EPS Surprise
Mobileye’s gross margin in the third quarter of 2023 increased 3 percentage points from the prior year period driven by reduced costs related to the amortization of intangible assets as a percentage of revenues, partly offset by higher expenses associated with the EyeQ chip. However, adjusted gross margin declined 5 percentage points year over year due to the increased cost of the EyeQ chip, which was passed on as a price increase to customers as of the beginning of 2023 on a zero-margin basis.
Adjusted operating margin increased nearly 3 percentage points year over year amid revenue growth and decreasing operating expenses as a percentage of revenues.
Mobileye had cash and cash equivalents of $1,193 million as of Sep 30, 2023, up from $1,024 million as of Dec 31, 2022. Operating cash flow for the nine months ended Sep 30, 2023 was $285 million. Capex was $75 million during the same timeframe.
Updated 2023 Guidance
For the full year of 2023, Mobileye estimates revenues to be in the range of $2,065-$2,090 million, tightened from the previously estimated range of $2,065-$2,114 million. It expects operating loss in the band of $79-$62 million, narrower than the previously guided range of $129-$98 million. Amortization of acquired intangible assets is estimated to be around $474 million, same as the prior guidance. Share-based compensation expenses are projected in the range of $253 million, down from the previous guidance of $255 million. Adjusted operating income is now estimated in the band of $648-$665 million, up from the prior forecast of $600-$631 million.
Zacks Rank & Key Picks
Mobileye currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for TM’s fiscal 2024 sales and EPS implies year-over-year growth of 10.5% and 27.5%, respectively. The earnings estimate for fiscal 2024 and 2025 has been revised upward by 4 cents and 21 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for HMC’s fiscal 2024 sales and EPS implies year-over-year growth of 7.7% and 29.4%, respectively. The earnings estimate for fiscal 2024 and 2025 has been revised upward by 4 cents and 7 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for NSANY’s fiscal 2024 EPS implies year-over-year growth of 12.6%. The earnings estimate for fiscal 2024 and 2025 has been revised upward by 10 cents and 3 cents, respectively, in the past 30 days.
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Mobileye (MBLY) Q3 Earnings Top, Sales Miss by a Slight Margin
Mobileye Global Inc. (MBLY - Free Report) registered third-quarter 2023 adjusted earnings per share of 22 cents, outpacing the Zacks Consensus Estimate of 17 cents. The bottom line also rose from 15 cents per share reported in the year-ago quarter. Total revenues amounted to $530 million, up 17.7% year over year, thanks to growth in both volume and average selling prices of EyeQ chip-related revenues. The top line, however, narrowly missed the Zacks Consensus Estimate of $531 million.
Mobileye Global Inc. Price, Consensus and EPS Surprise
Mobileye Global Inc. price-consensus-eps-surprise-chart | Mobileye Global Inc. Quote
Financials
Mobileye’s gross margin in the third quarter of 2023 increased 3 percentage points from the prior year period driven by reduced costs related to the amortization of intangible assets as a percentage of revenues, partly offset by higher expenses associated with the EyeQ chip. However, adjusted gross margin declined 5 percentage points year over year due to the increased cost of the EyeQ chip, which was passed on as a price increase to customers as of the beginning of 2023 on a zero-margin basis.
Adjusted operating margin increased nearly 3 percentage points year over year amid revenue growth and decreasing operating expenses as a percentage of revenues.
Mobileye had cash and cash equivalents of $1,193 million as of Sep 30, 2023, up from $1,024 million as of Dec 31, 2022. Operating cash flow for the nine months ended Sep 30, 2023 was $285 million. Capex was $75 million during the same timeframe.
Updated 2023 Guidance
For the full year of 2023, Mobileye estimates revenues to be in the range of $2,065-$2,090 million, tightened from the previously estimated range of $2,065-$2,114 million. It expects operating loss in the band of $79-$62 million, narrower than the previously guided range of $129-$98 million. Amortization of acquired intangible assets is estimated to be around $474 million, same as the prior guidance. Share-based compensation expenses are projected in the range of $253 million, down from the previous guidance of $255 million. Adjusted operating income is now estimated in the band of $648-$665 million, up from the prior forecast of $600-$631 million.
Zacks Rank & Key Picks
Mobileye currently carries a Zacks Rank #3 (Hold).
A few top-ranked players in the auto space include Toyota (TM - Free Report) , Honda (HMC - Free Report) and Nissan (NSANY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TM’s fiscal 2024 sales and EPS implies year-over-year growth of 10.5% and 27.5%, respectively. The earnings estimate for fiscal 2024 and 2025 has been revised upward by 4 cents and 21 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for HMC’s fiscal 2024 sales and EPS implies year-over-year growth of 7.7% and 29.4%, respectively. The earnings estimate for fiscal 2024 and 2025 has been revised upward by 4 cents and 7 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for NSANY’s fiscal 2024 EPS implies year-over-year growth of 12.6%. The earnings estimate for fiscal 2024 and 2025 has been revised upward by 10 cents and 3 cents, respectively, in the past 30 days.