Shares drop early as Mobileye (MBLY) cuts revenue forecast
Autonomous Tech company Mobileye Global (NASDAQ: MBLY) announced Thursday that the company has lowered its forecast for annual revenue, sending the company's shares down nearly 15% before the bell. The cut is due to a slowdown in electric-vehicle demand in China.
China's decision last year to end a more than decade-long subsidy for EV purchases has forced automakers to deepen discounts in the world's largest market in a bid to arrest a demand slowdown.
Mobileye said the downturn forced it to reduce the annual shipment forecast for its driver-assist system SuperVision.
Jerusalem, Israel-based Mobileye now expects revenue between $2.07 billion and $2.11 billion, compared with $2.19 billion and $2.28 billion estimated previously.
For the first quarter, Mobileye posted revenue of $458 million, compared with analysts' average estimate of $454.7 million, according to Refinitiv IBES data.
Excluding certain items, the company earned 14 cents during the quarter, compared with estimates of 12 cents per share.
Shares of MBLY are down 14.48% in pre-market trading on Thursday.
By Michael Elkins | [email protected]