Core Insights - Mobileye Global Inc. (NASDAQ:MBLY) has been recognized as one of the 10 Stocks Under $20 to Buy according to analysts, with UBS reiterating a Neutral rating and a price target of $17 [1][2] - The company has secured a new Surround ADAS award from a leading Western automaker, indicating progress in its long-term strategy [1][2] - The new program is not expected to generate revenue before 2028, suggesting a long wait for financial returns [2] Group 1 - UBS believes that the new award may lead to additional Surround ADAS contracts from non-Chinese manufacturers [2] - The 2026 revenue estimates for Mobileye are now considered more realistic compared to earlier forecasts [2] - The stock could see an increase if Mobileye announces the identity of the automaker involved in the new award [3] Group 2 - Mobileye specializes in developing advanced driver-assistance systems (ADAS) and autonomous driving technologies [3]

Financial Data and Key Metrics Changes - Q3 revenue reached $504 million, a 4% year-over-year increase, driven by an 8% growth in EyeQ volume, significantly outpacing the 1% growth in overall vehicle production among the top 10 customers [4][5] - Operating cash flow for Q3 was $167 million, with year-to-date operating cash flow nearly $500 million, reflecting a 150% year-over-year increase [4][17] - The company raised its full-year revenue outlook midpoint by 2% and adjusted operating income midpoint by 11%, with expected volumes about 2 million units higher than original guidance [5][17] Business Line Data and Key Metrics Changes - The core ADAS business is performing well, with volumes remaining healthy for the last five quarters, and expected to continue in Q4 [4] - SuperVision volumes exceeded expectations, with a revised full-year estimate of around 50,000 units, significantly higher than initial projections [15][19] - EyeQ5 currently represents about 10% of volume, expected to peak at around 15% next year, which may pressure gross margins [15] Market Data and Key Metrics Changes - Stronger-than-expected results in China contributed to overall performance, with better-than-expected shipments to Chinese OEMs and performance from Western OEM customers in China [5] - The company expects to outperform the production of top 10 OEM customers globally by about 5 percentage points in 2025 [6] Company Strategy and Development Direction - Mobileye is focusing on execution in the SuperVision and Chauffeur production programs, with significant software innovations expected in the coming months [9][44] - The company is pursuing opportunities in robotaxi technology, with plans to remove safety drivers in the first U.S. city in 2026 and expand geographically [10][11] - The EyeQ6 High-based Surround ADAS systems are being developed to meet stricter safety standards and consolidate technology on a single SoC [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential in India and the increasing adoption of ADAS technologies [7] - The transition from eyes-off to minds-off autonomy is seen as a significant inflection point for the company, with plans to bring such systems to production by early 2027 [9][10] - Management emphasized that the current demand for higher performance at lower costs is intensifying, positioning Mobileye favorably in the market [11] Other Important Information - The company is working on integrating REM into front-facing camera programs, which is expected to enhance data collection and performance [10][101] - Management highlighted the importance of cost optimization in the Surround ADAS category, which is critical for high-volume vehicle production [51][82] Q&A Session Summary Question: Clarification on Western OEM design win - The recent nomination is for a second Surround ADAS program from a leading Western OEM, expected to be a significant portion of their vehicle lineup [23] Question: Gross margin impact from EyeQ5 and EyeQ6 - EyeQ5 volume is not expected to significantly impact gross margins, as new launches will be with EyeQ6 Lite, which has higher profitability [25][28] Question: Q4 expectations and chip issues - No material impact is expected in Q4 from chip issues, and the company maintains a cautious outlook with a buffer for unforeseen logistical issues [34] Question: Normalized unit growth expectations - The company expects to grow faster than the top 10 OEMs due to ADAS adoption growth and emerging markets, with a performance of about 5 percentage points faster than these OEMs this year [42] Question: Competitive landscape for Surround ADAS - The competitive landscape is highly cost-sensitive, and Mobileye's first mover advantage and efficient chip design provide a significant edge [82][84]

Group 1 - Deutsche Bank upgraded Mobileye N.V. from Hold to Buy, raising its price target to $19.00 from $16.00, with shares climbing more than 3% intra-day following the announcement [1] - Analysts expect Mobileye to surpass guidance and raise its full-year outlook ahead of the third-quarter earnings on December 3, while investor expectations remain muted regarding new design wins or robotaxi developments [1] Group 2 - Deutsche Bank indicated that the base advanced driver-assistance systems (ADAS) business is now largely de-risked, with potential partnership announcements with Toyota before year-end [2] - The firm noted that Intel's improved balance sheet, supported by U.S. government funding and strategic investments, reduces the likelihood of further Mobileye share sales [3] - While maintaining conservative long-term forecasts, Deutsche Bank suggested that valuation multiples could re-rate higher based on future OEM wins [3]

Core Viewpoint - Mobileye Global Inc. reported strong first-quarter revenue growth of 83% year-on-year, reaching $438 million, surpassing analyst expectations, while adjusted EPS met consensus estimates [1][2]. Group 1: Financial Performance - First-quarter revenue increased by 83% year-on-year to $438 million, exceeding the analyst consensus estimate of $435.2 million [1]. - Adjusted EPS for the quarter was 8 cents, aligning with analyst consensus [1]. - FY25 earnings per share projected at 27 cents, while FY26 EPS estimate was lowered from 40 cents to 35 cents [5]. Group 2: Partnerships and Contracts - Strong design win momentum highlighted, including Mobileye's first Surround ADAS win and a significant ADAS contract with a Korean automaker [2]. - Progress noted in robotaxi partnerships with Uber and Lyft, with potential for meaningful contributions by 2027 [2]. - Lyft collaboration is advancing, with initial rollouts expected in Dallas by 2026, operated by Marubeni [3]. Group 3: Business Model and Forecast Adjustments - Partnerships will follow a business model involving a one-time upfront system fee and recurring licensing fees based on mileage, providing solid average selling prices and favorable margins [4]. - 2025 estimates remain mostly intact, with slight adjustments to gross margin and operating expenses; however, 2026 forecasts were reduced due to anticipated delays in SuperVision and CAV unit volumes [4]. - Porsche identified as the only driver of incremental SV volume in the near term [5].