Mobileye Q1 Earnings Match Expectations, Revenues Rise Y/Y

Financial Performance - Mobileye Global Inc. reported first-quarter 2025 adjusted earnings per share of 8 cents, matching the Zacks Consensus Estimate, compared to a loss of 7 cents per share in the same quarter last year [1] - Total revenues reached $438 million, exceeding the Zacks Consensus Estimate of $434 million, and reflecting an 83% year-over-year increase, driven by the normalization of order activity after Tier 1 customers reduced inventories significantly in the first quarter of 2024 [2] - The gross margin increased by 25 percentage points year-over-year, attributed to consistent amortization of intangible assets against a much higher revenue base [3] - Adjusted operating margin improved to 13%, recovering from an operating loss of 27% in the corresponding quarter of 2024, due to lower operating expenses as a percentage of revenues [3] Cash Flow and Capital Expenditure - As of March 29, 2025, Mobileye had cash and cash equivalents of $1.51 billion, up from $1.43 billion as of December 28, 2024, with operating cash flow for the quarter amounting to $109 million and capital expenditures at $14 million [4] 2025 Outlook - For the full year 2025, Mobileye estimates revenues between $1.69 billion and $1.81 billion, compared to $1.65 billion in 2024, with expected operating losses ranging from $489 million to $574 million, a significant reduction from the $3.2 billion operating loss in 2024 [4] - Adjusted operating income is projected to be between $175 million and $260 million, compared to $193 million in 2024 [4] Market Position - Mobileye currently holds a Zacks Rank of 3 (Hold) [5] - Other notable companies in the auto sector include Standard Motor Products, Inc. (Zacks Rank 1), Advance Auto Parts, Inc. and Carvana Co. (both Zacks Rank 2) [5]