(Reuters) – Mobileye forecast full-year revenue below Wall Street expectations on Thursday, anticipating fewer shipments of its assisted driving technology to China amid stiff competition from local players.
The company expects fiscal 2025 revenue between $1.69 billion and $1.81 billion, compared with the average analyst estimate of $1.94 billion, according to data compiled by LSEG.
Shipments for the company’s technology to China have been pressured by competition from domestic firms developing similar self-driving software at lower costs.
In December, Mobileye said its major automotive customers were losing market share in the country as domestic manufacturers are now offering less-expensive battery vehicles in the region.
Shipment volumes of Mobileye’s chips in China are improving compared with 2024 but still remain sluggish, company executives said on a post-earnings call on Thursday.
Earlier this month, the Chinese government reintroduced some EV subsidies to encourage citizens to adopt environment-friendly vehicles.
Mobileye reported fourth-quarter revenue of $490 million, beating estimates of $477.8 million.
Although the company beat market expectations for revenue, the numbers fell 23% from a year earlier due to less demand for its EyeQ chips as major customers work through excess supply.
Mobileye said on Friday that testing of its assisted driving tech with potential customers “will bear fruit in 2025”.
The company doesn’t see a trend where legacy automakers develop their own in-house driver assistance systems owing to many firms rethinking their electrification strategy as EV demand slows, Mobileye added.
On an adjusted basis, the company earned 13 cents per share in the fourth quarter, compared with estimates of 11 cents. It also reported a 30% fall in gross profit in the quarter.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shinjini Ganguli and Shounak Dasgupta)
