Intel-Owned Autonomous Driving Company Mobileye Beats Q4 Estimates, Revenue Drops 23%
Thursday, Jan 30, 2025 9:23 am ET
4min read Mobileye Global Inc., an Intel-owned autonomous driving technology company, reported its fourth-quarter and full-year 2024 financial results on January 30, 2025. Despite a 23% drop in revenue compared to the same period last year, the company managed to beat analysts' estimates, driven by strong cash flow generation and progress on advanced solutions. Here's a closer look at Mobileye's performance and its long-term prospects.
Q4 2024 Financial Performance
* Revenue: $490 million, down 23% year-over-year (YoY)
* Gross Profit: $241 million, down 30% YoY
* Gross Margin: 49%, down 482 basis points (bps) YoY
* Operating Income: $(86) million, compared to $73 million in Q4 2023
* Operating Margin: (18%), compared to 11% in Q4 2023
* Net Income: $(71) million, compared to $63 million in Q4 2023
* EPS: $(0.09), compared to $0.08 in Q4 2023
Full-Year 2024 Financial Performance
* Revenue: $1.65 billion, down 20% YoY
* Cash Flow from Operations: $400 million, slightly exceeding 2023 performance
* Cash Reserves: $1.4 billion
Q4 2024 Earnings Call Highlights
* Mobileye's operating loss, including accounting adjustments, is expected to range between $489 million and $574 million, while the adjusted operating profit is forecasted at $175–260 million.
* The company forecasts annual revenue between $1.7 billion and $1.8 billion for 2025, signaling some recovery but still falling short of 2023 levels.
* Mobileye's stock fell premarket after the earnings release, as investors had hoped for a more optimistic outlook.
Mobileye's Strategic Shift and Long-Term Prospects
Mobileye's strategic shift towards autonomous driving has presented both challenges and opportunities. While the company has faced revenue declines and significant write-offs, it has maintained strong cash flow and ended the year with a substantial cash reserve. With a robust pipeline of opportunities for its advanced solutions and a focus on innovation, Mobileye is well-positioned to return to growth in the coming years.
Investors can assess Mobileye's long-term prospects and potential for value creation by considering the company's strong cash flow generation, technological leadership, market growth opportunities, and strategic initiatives. By focusing on these factors, investors can make informed decisions about Mobileye's long-term investment potential.
In conclusion, Mobileye's Q4 2024 financial results, while challenging, demonstrate the company's ability to generate strong cash flow and maintain a robust pipeline of opportunities. As the autonomous driving market continues to grow, Mobileye's long-term prospects remain positive, driven by its innovative technology and strategic initiatives.
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