Mobileye (NASDAQ:MBLY) stock isn’t doing so hot on Thursday as investors digest the autonomous driving technologies company’s outlook for 2024 and preliminary 2023 earnings results.
The big news dropping MBLY stock is a warning about the company’s revenue for the first quarter of 2024. This has it noting that many Tier 1 customers purchased excess inventory of about 6 million to 7 million units.
Mobileye says this was done by its customers as a way to insulate them against potential supply issues from 2021 and 2022. As a result, Mobileye is expecting revenue for Q1 2024 to be 50% lower than Q1 2023. However, it says revenue for 2024 should normalize after that first quarter as customers work through their inventory.
This has Mobileye expecting revenue for the full year of 2024 to range from $1.83 billion and $1.96 billion. Considering Wall Street’s 2024 revenue estimate is $2.58 billion, it makes sense MBLY stock is down today.
2023 Earnings Hit MBLY Stock
Another blow to Mobileye shares comes from its preliminary earnings report for the full year of 2023. This has it expecting revenue for the year to range from $2.076 billion and $2.08 billion. For perspective, Wall Street expects revenue of $2.08 billion for the year.
All of this news brings heavy trading to MBLY stock on Thursday with some 7 million shares changing hands. That’s well beyond the company’s daily average trading volume of about 2.1 million shares.
MBLY stock is down 26.4% as of Thursday morning.
Investors seeking out even more of the latest stock market stories are in luck!
We have all of the hottest stock market news traders need to know about on Thursday! A few examples include what’s going on with shares of Peloton (NASDAQ:PTON), Walgreens (NASDAQ:WBA) and Evotec (NASDAQ:EVO) stock today. You can catch up on all of this news at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
