Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Mobileye expects smooth ride in 2023 as customers lap up autonomous tech

Published 01/26/2023, 07:56 AM
Updated 01/26/2023, 11:35 AM
© Reuters. The listing of Mobileye Global Inc., the self-driving unit of chip maker Intel Corp, is seen on a jumbotron outside the Nasdaq MarketSite at Times Square in New York City, U.S., October 26, 2022.  REUTERS/Shannon Stapleton

© Reuters. The listing of Mobileye Global Inc., the self-driving unit of chip maker Intel Corp, is seen on a jumbotron outside the Nasdaq MarketSite at Times Square in New York City, U.S., October 26, 2022. REUTERS/Shannon Stapleton

(Reuters) -Mobileye Global Inc forecast fiscal 2023 revenue higher than analysts' projections and delivered better-than-expected earnings in the fourth quarter, as vehicle makers lapped up its driver-assistance technology.

The company is benefiting from the automotive industry increasingly adopting sophisticated camera systems and sensors that assist in safe driving.

Earlier this month, founder and Chief Executive Officer Amnon Shashua said Mobileye has a revenue pipeline of over $17 billion through 2030 for its core advanced driver-assistance system (ADAS) products.

The company is pushing adoption for its near-fully autonomous system SuperVision, and garnering interest for Chauffeur, a turn-key product that can turn any vehicle into a Level 4 self-driven vehicle.

"We expect SuperVision to be a very large growth driver in 2023 and beyond," Shashua said in a post-earnings analyst call, adding that it retails at a higher price than other products.

Mobileye, majority owned by Intel, forecast full-year 2023 revenue between $2.19 billion and $2.28 billion. The mid-point of the range came in higher than analysts' average estimate of $2.21 billion, according to Refinitiv data.

Shares of the company were up over 4% in early trading.

Automotive chip and ADAS supplier STMicroelectronics NV also beat fourth-quarter sales and earnings estimates, sending its U.S.-listed shares up 7.5%.

Mobileye typically gives conservative forecast and investors will be expecting it to deliver at the upper end of its fiscal 2023 outlook, Evercore ISI said in a note.

© Reuters. FILE PHOTO: Mobileye driverless car logo is seen on a vehicle at the Nasdaq Market site in New York, U.S., July 20, 2021. REUTERS/Jeenah Moon/File Photo

The company raised $861 million in its second initial public offering in October, when Intel Corp (NASDAQ:INTC) spun it off after taking it private in 2017.

Revenue jumped 59% to $565 million in the quarter ended Dec. 31, beating analysts' estimate of $535.82 million, according to Refinitiv. Mobileye reported adjusted earnings per share of 27 cents, compared with the consensus estimate of 17 cents.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.