Key Takeaways
- Mobileye Global Inc.’s full-year revenue guidance came in well short of analysts’ estimates.
- The company attributed the gap to customers holding on to a backlog of products.
- The maker of autonomous vehicle technology said that supply-chain issues and lower original equipment manufacturer (OEM) production led customers to stock up.
- Shares of Mobileye dropped Thursday to their lowest level in a year, losing a quarter of their value by midday.
Shares of Mobileye Global Inc. (MBLY) lost a quarter of their value Thursday after the Israel-based maker of self-driving vehicle technology gave a full-year outlook that fell well short of estimates.
Mobileye said it expects 2024 revenue in a range of $1.83 billion to $1.96 billion. Analysts were anticipating nearly $2.6 billion. Mobileye attributed the dour outlook to its customers being overstocked.
The company said it has determined much of clients’ excess inventory was the result of supply-chain constraints in 2021 and 2022. Less-than-expected production from some original equipment manufacturers (OEM) last year also attributed to customers’ backlog, the company said. Customers have been stocking up to make sure they weren’t caught short on supplies, which will limit buying this year.
Mobileye said it believes that following a drawdown, its customers’ inventories will return to normal levels at the end of this year.
The news led analysts at Raymond James and Wolfe Research to downgrade the stock.
Mobileye Global shares sank roughly 25% Thursday to their lowest level since November 2022, trading at about $29.50. Shares of Intel Corp. (INTC), which holds an 88% stake in the company, initially declined but recovered to trade flat at midday.
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