Mobileye lifts outlook after beating estimates as automakers renew demand
The Israeli company cites stable auto production and growing momentum for autonomous systems.
Mobileye beat Wall Street’s revenue estimates for the third quarter as automakers ramped up orders for its driver-assistance chips in a race to adopt autonomous driving software.
The company is seeing a sharp rise in demand for its self-driving systems after a prolonged period of weakness, as customers have now cleared inventories that built up during the coronavirus pandemic amid fears of semiconductor shortages.
The company reported a 4% increase in third-quarter revenue to $504 million, surpassing LSEG estimates of $480.9 million. Adjusted earnings per share came in at 9 cents, in line with market expectations.
Mobileye raised the lower end of its full-year revenue forecast and now expects annual revenue of $1.85 billion to $1.89 billion, representing 12%–14% year-on-year growth, compared with its previous projection of $1.77 billion to $1.89 billion.
“The business delivered another strong quarter, with solid revenue growth and disciplined cost management. Continued auto production stability gives us confidence to again raise our full-year outlook, removing conservatism we had embedded earlier due to macro uncertainty,” said Mobileye President and CEO Prof. Amnon Shashua. “We see tremendous opportunities ahead as we execute toward on-time launches of advanced EyeQ6 High-based products, deepen engagement with strategic customers across our portfolio, and prepare for the commercialization of driverless robotaxi beginning in 2026.”
The Intel-controlled chipmaker has previously emphasized the long-term revenue potential of the robotaxi industry, where several technology and mobility players are competing for early dominance. Mobileye is partnering with companies such as Lyft to deploy autonomous taxis, a market analysts expect to become increasingly competitive in the coming years.
However, even as demand improves, economic uncertainty continues to weigh on automakers. Tariffs on imported vehicles and spare parts have forced many of Mobileye’s customers to reorganize supply chains. Mobileye has said it does not expect to be directly affected by the tariffs.
The company’s shares had come under pressure earlier this year after Intel sold $1 billion worth of Mobileye stock, reducing its stake.
