Mobileye NV (NYSE: MBLY)
Earnings Report
Mobileye (MBLY) reported earnings Thursday before the market opened and, despite beating analyst estimates, traded lower on the day. Analyst polled at Thomson Reuters estimated earnings of 8 cents per share on $47.9 million in revenue, however, MBLY posted earnings of 10 cents per share on $52.8 million in revenue, over a 50% improvement from earnings posted in the same period last year.
Ofer Maharshak, SVP and CFO, offered some positive remarks in the earnings conference call on the guidance for the remainder of 2015, stating:
“I’d like now to finish with some thoughts regarding our financial outlook for the full year 2015. Given the increased demand that we saw this quarter as well as the visibility we have related to customer demand during the second half of 2015, we are raising our full year revenue guidance for 2015 to the range of $235 million and $239 million, which represents growth of approximately 65% compared to 2014 and is above our prior guidance of $217 million to $218 million and highlights the expected increase in demand from existing on the road program as well as new program launches.” Seeking Alpha
Overall, this was a great earnings report for MBLY. They saw strong growth and increased demand for their products and are expecting it to continue for the foreseeable future. The fact that share prices sold of after better-than-expected earnings probably has to do with profit taking mixed with the overall market selling off and it’s even possible that investors were expecting more than what analyst were estimating. Currently analysts have an average price target of around $68 per share, 15% upside from Thursday’s close.
MBLY Technicals
Mobileye has been a great performer for 2015 with a share price increase of 44% on the close before they reported earnings. After hitting a 2015 low of $32.41, the share price has been on a strong upward trend and hit a high of $63.17 before coming off a little bit and settling in the high $50 range. Shares sold off on the morning earnings were released to a low of $54.25 before settling down and slowly grinding back up to a close of $59.11, just over half a percent down from the pervious day close.
Share price has been consolidating between the $58 and $62 price levels the past couple weeks and have become the support and resistance levels respectively. It’s pierced the $62 level a couple of times but both days saw closes back below that level. The huge hammer candle created on earnings day looks great for a bull argument but we definitely want to see it hold that $58 level and make a punch through $62 on volume to confirm the move.
Company Profile
Mobileye NV engages in the designing and development of software and related technologies for camera-based advanced driver assistance systems. It operates through the following business segments: Original Equipment Manufacturing and After Market. The Original Equipment Manufacturing segment supplies systems on Chip, which includes core intelligence to be ultimately implemented within new vehicles through Tier 1 manufacturers who are system integrators to the automotive industry. The After Market segment engages in selling complete system, which offers advanced driver assistance functions to customers being primarily fleet commercial vehicles, fleet management system providers, new vehicle dealers and importers either directly, through distributors or through insurance companies. The company was founded by Ziv Aviram and Amnon Shashua in 1999 and is headquartered in Jerusalem, Israel. Yahoo
