Intel Spinoff Mobileye Revenue Falls Amid Supply Chain Reset, CEO Optimistic About Recovery
Portfolio Pulse from Anusuya Lahiri
Mobileye Global Inc (NASDAQ:MBLY) reported a 48% year-on-year revenue decline in Q1 2024 to $239.00 million, slightly above consensus. Adjusted EPS was $(0.07), missing consensus by $(0.01). The decline was attributed to a supply chain reset and excess inventory consumption. EyeQ and SuperVision revenue dropped significantly, and the number of systems shipped halved. Despite these challenges, the company maintains its FY24 revenue and adjusted operating income outlook. Mobileye was spun off by Intel Corp (NASDAQ:INTC) in October 2022. MBLY shares fell 5.21% to $29.50.

April 25, 2024 | 2:08 pm
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NEUTRAL IMPACT
Intel Corp, having spun off Mobileye in October 2022, may see indirect effects from Mobileye's financial performance.
As the former parent company, Intel's stock might see some indirect impact from Mobileye's performance, though the direct financial linkage is less clear post-spinoff.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Innovator Deepwater Frontier Tech ETF, holding MBLY stock, may face short-term negative impacts from Mobileye's performance.
LOUP's inclusion of MBLY means the ETF might see short-term negative effects from Mobileye's earnings miss and subsequent stock price decline.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40
NEGATIVE IMPACT
TrueShares Technology, AI & Deep Learning ETF, which includes MBLY, may be impacted by Mobileye's stock performance.
Given LRNZ's exposure to MBLY, the ETF might experience negative short-term impacts due to Mobileye's recent stock price decline.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40
NEGATIVE IMPACT
Mobileye reported a significant revenue decline but beat revenue estimates. The stock price dropped 5.21% following the announcement.
The revenue decline and EPS miss are negative indicators, but beating revenue estimates provides a slight positive counterbalance. The stock price reaction (-5.21%) directly reflects the mixed financial results.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100