Mobileye Selling Off Despite 'Robust' Q1 Results

Mobileye NV (NYSE: MBLY) reported robust 1Q results, with revenues ahead of the consensus and estimate.

Goldman Sachs’ Alexander Duval maintains a Buy rating on the company, with a price target of $45.

Robust 1Q

Duval mentioned that the 1Q revenue of $75.2 million represented 65 percent year-on-year growth. Both the OEM and Aftermarket revenues beat the estimates and the consensus.

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Adjusted net income came in at $35 million, 4 percent above consensus, driven by 75.3 percent gross margins and “clean opex” of $19.8 million.

Mobileye reported year-on-year volume growth of 62 percent in EyeQ chips, with slight higher ASP, quarter-on-quarter.

“The company also highlighted that it is making strong progress in developing the fifth generation EyeQ chip, which is planned to be launched in 2020, representing an accelerated time frame,” Duval stated.

Mobileye intends to extend its REM mapping technology to additional OEMs through new partnerships.

At time of writing, Mobileye was down 1.75 percent on the day at $35.90.