Last updated: January 4, 2024 at 7:40 a.m. ET
First Published: January 4, 2024 at 7:18am ET
Shares of Mobileye Global Inc. plunged in pre-market trading Thursday after the self-driving technology developer issued a profit warning as customers grappled with excess inventory.
Mobileye MBLY expects first-quarter revenue to be down about 50% from $458 million in the year-ago period. Analysts tracked by FactSet had expected sales to rise to $557 million in the same period.
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Shares of Mobileye Global Inc. plunged in pre-market trading Thursday after the self-driving technology developer issued a profit warning as customers grappled with excess inventory.
mobile eye
MBLY
The company expects first-quarter sales to be down about 50% from $458 million in the same period last year. Analysts tracked by FactSet had expected sales to rise to $557 million in the same period.
The company said in a press release that it “became aware of customer excess inventory” amounting to an estimated 6 million to 7 million units of its EyeQ products. “We expect our customers to use the majority of this excess inventory in the first quarter of this year as supply chain concerns ease,” Mobileye said in a statement.
Shares fell more than 25% in pre-market trading.
The company warned that the volume shortage could also impact profits. Mobileye said it expects its first-quarter operating loss to be between $242 million and $257 million. I expect it to be.
Mobileye noted that customer overstock issues could impact its revenue for the remainder of 2024 “to a much lesser extent.” “As a result, we expect total revenue to be flat to moderate from the second quarter to the fourth quarter of 2024,” compared to the same period in 2023, and customer inventory “We expect the market to reach normal levels by the end of 2024,” the company said.
The full-year outlook calls for revenue of $1.83 billion to $1.96 billion, while analysts were modeling for $2.56 billion.
