Mobileye beats revenue estimates in first quarterly report since IPO

MOBILEYE Global beat estimates for revenue and earnings on Wednesday (Dec 7) in its first quarterly report after going public in October, as the Intel unit benefited from strong demand for its self-driving technology from carmakers.

Shares of the company were up about 2 per cent at US$31 in premarket trading, after it also forecast a revenue range for the current quarter that came in well above expectations.

A push to incorporate assistive-driving capabilities to bolster safety features in cars has led to greater adoption of self-driving technology, helping companies such as Mobileye.

Total revenue at Mobileye grew 38 per cent to US$450 million in the third quarter ended Oct 1. Analysts were expecting revenue of US$447 million, according to Refinitiv data.

Net loss, however, widened to US$45 million from US$26 million. On an adjusted basis, the company earned 15 cents per share, above analysts’ estimates of 12 cents, according to Refinitiv.

It forecast fourth-quarter revenue of between US$527 million and US$545 million. Analysts were expecting revenue of US$483.7 million for the quarter.

Mobileye, which counts BMW, Nissan, Volkswagen, among others as its customers, listed on the Nasdaq on Oct 26 after raising US$861 million in an initial public offering. Its stock has risen 45 per cent from the IPO price of US$21, valuing the company at US$24.45 billion. REUTERS