Mobileye Reports Q2 Earnings Beat, Lowers FY24 Guidance Due to China Softening; Stock -10%

Mobileye has reported its Q2 2024 earnings, revealing an adjusted EPS of $0.09, surpassing the estimated $0.08. The company's revenue for the quarter reached $439 million, exceeding the expected $427 million and the consensus of $424.8 million. However, Mobileye has significantly lowered its full-year 2024 revenue guidance to a range of $1.6 billion to $1.68 billion, down from the previous estimate of $1.83 billion to $1.96 billion. This adjustment is attributed to a more significant than anticipated softening of business conditions in China, which is expected to present challenges in the second half of the year. Additionally, Mobileye has cut its FY24 sales forecast to $1.64 billion from $1.9 billion and its operating income projection to $175 million from $320 million. The reduction in SuperVision estimates from customers also contributed to the lowered guidance. The company's stock has reacted negatively, dropping 10% in pre-market trading.