Mobileye shares plummet after Israeli company cuts revenue forecast
Mobileye shares plummet after Israeli company cuts revenue forecast
The Israel-based autonomous driving technology maker now expects revenue between $2.07 billion and $2.11 billion in 2023, compared with $2.19 billion and $2.28 billion estimated previously
Autonomous driving technology maker Mobileye lowered its forecast for annual revenue on Thursday due to a slowdown in electric-vehicle demand in major auto market China. The company's shares were down nearly 15% before the bell.
China's decision last year to end a more than decade-long subsidy for EV purchases has forced automakers to deepen discounts in the world's largest market in a bid to arrest a demand slowdown.
Jerusalem, Israel-based Mobileye now expects revenue between $2.07 billion and $2.11 billion, compared with $2.19 billion and $2.28 billion estimated previously.
For the first quarter, Mobileye posted revenue of $458 million, compared with analysts' average estimate of $454.7 million, according to Refinitiv IBES data.
Excluding certain items, the company earned 14 cents during the quarter, compared with estimates of 12 cents per share
Mobileye, which counts auto parts suppliers Aptiv and Magna International among its customers, said the downturn forced it to reduce the annual shipment forecast for its driver-assist system SuperVision.
The company, which is backed by Intel, also faces intensifying competition in the assisted driving market from Nvidia and Qualcomm that are trying to make inroads into the space.
Tough regulatory scrutiny and delayed commercial adoption of assisted driving technology has, however, clouded the outlook for the industry, sparking some worries among investors.
