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The Markets
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Tech

Mobileye stock drops on revenue warning

Mobileye Global Inc shares sank as much as 30% in pre-market trading on Thursday after the self-driving technology developer issued a revenue warning as its customers cope with excess inventory.

Mobileye said it expects its first-quarter 2024 revenue to fall about 50% from the $458 million it generated during the comparable period in 2023.

Analysts polled by FactSet had anticipated revenue to rise to $557 million for 1Q.

"Similar to revenue, we expect Q1 profit levels to be significantly below the subsequent quarters," a Mobileye spokesperson said in a statement.

The company also guided for full-year 2024 revenue of between $1.83 billion to $1.96 billion, far short of the $2.56 billion expected by Wall Street.

Mobileye’s preliminary results for 4Q 2023, however, were in line or better than its previous guidance.

Intel Corp held about 88% of Mobileye’s outstanding shares as of the end of September 2023.

Shares of Mobileye Global have gained 28% during the past year as of Wednesday’s closing price.

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