Mobileye Global (MBLY 3.75%) is a leader in advanced driver assistance systems (ADAS) and autonomous vehicle (AV) technologies. On Jan. 30, 2025, it announced its earnings for the fourth quarter of 2024, showing signs of progress despite some challenges. Revenue for the quarter was $490 million, surpassing analyst projections of $478 million but marking a 23% decline from the same quarter last year. Adjusted Non-GAAP earnings per share (EPS) was $0.13, beating estimates of $0.11 yet falling short of last year's $0.28. .
| Metric | Q4 2024 | Q4 Estimate | Q4 2023 | Y/Y Change |
|---|---|---|---|---|
| Adjusted EPS - Diluted | $0.13 | $0.10743 | $0.28 | -53.6% |
| Revenue | $490M | $478M | $637M | -23.1% |
| Adjusted Operating Margin | 21% | N/A | 39% | -18 pp |
| Operating Cash Flow (Annual) | $400M | N/A | $394M | +1.5% |
Source: Analyst estimates for the quarter provided by FactSet
Mobileye Global is at the forefront of developing advanced driver assistance systems (ADAS) and autonomous vehicle (AV) technology. It is renowned for its technological innovations, including the EyeQ system-on-chip, which is critical for the various degrees of driving automation. The company focuses heavily on improving sensor technology and creating high-definition mapping solutions.
Recent initiatives have seen Mobileye advancing its EyeQ6 High System-on-Chip and expanding its product lines to enhance future product launches. Integral to its operations is maintaining industry leadership through continuous innovation and strategic partnerships with major automotive OEMs (original equipment manufacturers).
During Q4 2024, Mobileye outperformed analyst expectations in both revenue and EPS. Revenue registered at $490 million, surpassing the $478 million forecast whilst experiencing a 23% reduction from the same period last year. This was primarily due to a 20% decrease in EyeQ SoC volumes.
The company's adjusted non-GAAP EPS of $0.13 exceeded analyst estimates, reflecting the ability to execute despite challenges. However, gross margin contracted by nearly five percentage points owing to amortization costs.
Operational achievements included launching new ADAS programs across many vehicle models, alongside updates in its technological portfolio. Despite these advances, demand fluctuations caused by inventory buildups at Tier 1 customers remain a concern.
Mobileye continues to collaborate with major automotive players and strengthen its ecosystem. These partnerships, along with developments in EyeQ6 and mapping capabilities, support its strategic initiatives and potential market expansion.
For 2025, Mobileye projects revenues to range between $1.69 billion and $1.81 billion. Management's guidance suggests a negative operational loss but forecasts an adjusted operating income between $175 million and $260 million.
Investors should watch for further technological advancements and their execution of existing contracts. Notable attention should also be on Mobileye's efforts to convert ongoing pre-design engagements into firm production agreements by 2026.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.