© Reuters. The listing of Mobileye Global Inc., the self-driving unit of chip maker Intel Corp, is seen on a jumbotron outside the Nasdaq MarketSite at Times Square in New York City, U.S., October 26, 2022. REUTERS/Shannon Stapleton
(Reuters) -Mobileye Global Inc forecast fiscal 2023 revenue higher than analysts’ projections and delivered better-than-expected earnings in the fourth quarter, as vehicle makers lapped up its driver-assistance technology.
The company is benefiting from the automotive industry increasingly adopting sophisticated camera systems and sensors that assist in safe driving.
Earlier this month, founder and Chief Executive Officer Amnon Shashua said Mobileye has a revenue pipeline of over $17 billion through 2030 for its core advanced driver-assistance systems (ADAS) products.
The company is pushing adoption for its near-fully autonomous system SuperVision, and also garnering interest for Chauffeur, a turn-key product, that can turn any vehicle into a Level 4 self-driven vehicle.
“We expect SuperVision to be a very large growth driver in 2023 and beyond,” Shashua said in a post-earnings analyst call, adding that it retails at a higher price than other products.
Mobileye, majority owned by Intel, forecast full-year 2023 revenue between $2.19 billion and $2.28 billion. The mid-point of the range came in higher than analysts’ average estimate of $2.21 billion, according to Refinitiv data.
Shares of the company, which counts Volkswagen (ETR:) Group, Ford Motor (NYSE:) Co and General Motors Co (NYSE:) among its customers, rose as much as 7.5% premarket before paring some gains.
Mobileye typically gives conservative forecast and investors will be expecting it to deliver at the upper end of its fiscal 2023 outlook, Evercore ISI said in a note.
The company raised $861 million in its second initial public offering in October, when Intel Corp (NASDAQ:) spun it off after taking it private in 2017.
Revenue jumped 59% to $565 million in the fourth quarter ended Dec. 31, beating analysts’ average estimate of $535.82 million, according to Refinitiv.
The company posted adjusted earnings per share of 27 cents, compared with the consensus estimate of 17 cents.