Mobileye Posts Q3 2022 Earnings Report, Beats Out Analysts’ Expectations on Revenue

Mobileye Global Inc (NASDAQ: MBLY) recently posted its Q3 2022 financial report, which revealed better-than-expected numbers for the Jerusalem-based Intel Corporation (NASDAQ: INTC) spinoff. For the third quarter of this year, Mobileye’s total revenue surged 38% year-over-year (YoY) to $450 million compared to analysts’ expectations of $447 million for the same period. In addition, the Israeli autonomous driving technology developer also saw its share price climb 6.26% to $32.40.

Following its substantial Q3 2022 revenue intake, Mobileye has forecast fourth-quarter revenue of between $527 million and $545 million. This lofty target trumps the relatively conservative $483.7 million analysts expected for Q4. Mobileye also earned 15 cents per share for the period, which surpassed the consensus estimate of 12 cents. In addition, the company reported an operating cash flow of $395 million for the 9 months ended October 1st. Furthermore, property and equipment purchases for the same period came in at $79 million.

Overall, Mobileye is reportedly on track to rake in annual revenue up to $1.849 billion, far exceeding analysts’ estimates of $1.785 billion. Most analysts remain bullish on the company’s stock, as evidenced by the extensive Buy ratings across Wall Street. In addition, the Intel unit now has a market cap of $26.1 billion from the $17 billion it was at when it was first publicly listed in October.

Mobileye Q3 2022 Development Reflects Company’s Strong Position since October IPO

Mobileye’s latest quarterly outing is the first since the self-driving car technology company went public in late October. Weighing in on its commendable third quarter, Mobileye President and CEO, Prof. Amnon Shashua, stated:

“Our recently-completed IPO is a major milestone for Mobileye and enhances our ability to create value for all stakeholders.”

In addition, Shashua also commented on Mobileye’s humble beginnings and highlighted the company’s journey so far. As he put it:

“Our time as an Intel subsidiary, operating largely in stealth, was very successful. We built upon our leadership position in ADAS while at the same time productized an advanced set of technology building blocks that support a product portfolio spanning the entire ADAS to AV spectrum.”

Mobileye’s Average Price System for the third quarter came in at $53.0 versus $45.7 in the prior year period. The company ascribed the gain primarily to an increased mix of advanced products. Furthermore, gross margin increased by 130 points in Q3 compared to the year-ago period. According to Mobileye, this increase was due to the reduced impact of the cost attributable to intangible asset amortization as a percentage of revenues.

However, despite some of these positive optics in Mobileye’s third quarter outing, the company sustained a more considerable net loss. The latest deficit came in at $45 million compared to the much smaller $26 million suffered in Q3 2021. Furthermore, despite its autonomous vehicle technology developer billing, Mobileye disclosed that it still derives most of its revenue from assistance and alert systems. This fact is opposed to the company presumably raking in revenue from fully autonomous driving system services.