Israel’s Mobileye (NASDAQ: MBLY) continues its strong performance on Nasdaq since its return to the U.S. stock exchange in October. The company’s shares jumped during trading hours after it announced better than expected financial results for the third quarter. In addition, the management also upgraded its outlook for the current quarter, underscoring the company’s strong financial position.
Total sales increased by 38% to $450M in Q3, beating market expectations by 7%. Also, earnings of $0.15 per share on an adjusted basis beat analysts’ projections of $0.12. However, the net loss increased to $45M, up from $26M previously.
“Our recently-completed IPO is a major milestone for Mobileye and enhances our ability to create value for all stakeholders. Our time as an Intel subsidiary, operating largely in stealth, was very successful. We built upon our leadership position in advanced driver-assistance system (ADAS) while at the same time productized an advanced set of technology building blocks that support a product portfolio spanning the entire ADAS to AV spectrum. Our excellent third quarter performance is an early indication of the success of our strategy. Our established base ADAS products continue to generate strong growth and profitability while our advanced portfolio is beginning to contribute significantly, particularly by boosting average system price. Initial market success of products such as SuperVision is also driving increased business traction. Customers see the potential to drive profit and product differentiation in the near-term, while taking a meaningful step towards future ‘eyes off’ consumer AV systems which can be added to SuperVision in a modular way,” said Amnon Shashua, the president and CEO of the company.
It is important to note that Mobileye’s market value has grown by around 50% since the company held its IPO back in October. This is particularly relevant in light of the fact that the Nasdaq remains firmly entrenched in bear market territory, with year-to-date performance standing at -30%.