Tag Archives: hmc

Mobileye Q4 Earnings Tops Views, But Tesla Partner’s Outlook Light

Mobileye ( MBLY ) reported fourth quarter earnings before the market open Wednesday that beat estimates but provided a 2016 outlook that fell short. The provider of driver-assistance technology reported revenue of $71.8 million, up 81% year-over-year and topping the consensus estimate of $70.76 million. Mobileye reported earnings per share minus items of 15 cents, compared with 6 cents a year ago and topping the consensus of 14 cents. Mobileye’s guidance for 2016 fell short. It forecasts revenue in the range of $336 million to $340 million, up 40% at the midpoint but below views of $344.5 million. It forecast earnings per share of 68 cents to 69 cents, below the forecast of 70 cents. Mobileye stock rebounded after falling 14% briefly Thursday morning. In early afternoon trading the stock was down 2%, near 28 in the stock market today . The stock is far below its all-time high of 64.48 set in August, under pressure over growing competition from Alphabet ( GOOGL ) and others. While Alphabet’s Google car gets most of the media attention for self-driving cars, Mobileye is one of the tech companies in the driver’s seat, a leader in autonomous-driving technology. It specializes in developing chips and software that collect and process data from automobiles’ camera systems and sensors. Customers include General Motors ( GM ), Ford Motors ( F ), BMW, Honda Motor ( HMC ) and Nissan Motor. Mobileye has listed Tesla Motors ( TSLA ) as a customer but details of that agreement have not been revealed. Tesla has referred to it as a “business relationship.” Tesla has said it plans to develop its own autonomous-driving systems but would use sensors and components from other companies. Mobileye’s camera-based system identifies detailed interpretations of roads and sidewalks to help prevent collisions with vehicles, pedestrians and anything else, the company says. It detects roadway markings and boundaries and can read traffic signs and lights. On Tuesday, Mobileye announced an agreement with Nissan ( NSANY ) to integrate Mobileye’s new Road Experience Management technology into Nissan’s fleets. Nissan is the third large automaker to have partnered with Mobileye to integrate its new REM.  The technology provides real-time data for precise localization and high-definition lane data to support fully autonomous driving. Mobileye raised $890 million from its August 2014 initial public offering, selling 35.6 million shares at an above-range price of 25. Mobileye stock currently gets a 54 Composite Rating from IBD out of a possible 99.

Oculus Rift VR Sales Pit Nvidia, Advanced Micro In GPU Battle

Facebook ( FB )-owned Oculus has pledged to release more than 100 virtual reality games by year’s end, a move that will buoy Tesla Motors ( TSLA ) partner Nvidia ( NVDA ), MKM analyst Ian Ing wrote Tuesday as he reiterated a buy rating on shares. Intraday on the stock market today , Nvidia stock jumped 3.2% ahead of the chipmaker’s scheduled fiscal Q4 earnings report. Late Wednesday, Nvidia is expected to report record-breaking sales, but earnings that fall for the first time in two years. For Nvidia’s fiscal Q4, the consensus of 29 analysts model $1.31 billion in sales, up 5% year over year, and 32 cents earnings per share ex items, down 9% vs. the year-earlier quarter. Three months ago, Nvidia guided to $1.3 billion in sales, plus or minus 2%. Analysts view $4.92 billion in sales and $1.05 EPS minus items for Nvidia’s fiscal 2016 — up 5% and down 6%, respectively, vs. fiscal 2015. Nvidia’s Q4 guidance implies a full-year outlook of $4.91 billion in sales. MKM’s Ing expects Nvidia to outperform its peers “in a challenging earnings season.” Other chipmakers have suffered Apple ( AAPL ) fatigue in December and ahead of the weak March quarter. “Nvidia remains our top pick based on strength in its core gaming business (58% of October quarter sales) plus abundant ‘call options’ where GPUs could become the ideal solution in coming years,” Ing wrote in a research report. Tesla, Audi, Volkswagen ( VLKAY ), Honda ( HMC ) and BMW use Nvidia graphics processing units (GPUs), according to a November Canaccord report. Continuing infotainment and autonomous-driver efforts will boost Nvidia, Ing wrote. With the release of the Oculus Rift VR headset in March, Nvidia and rival Advanced Micro Devices ( AMD ) are poised to “leapfrog each other” to supply gamers’ video cards, Ing wrote. The Rift website specifies the Nvidia GTX 970 or AMD R9 290. Pricing trends have been relatively benign lately, Ing wrote. Average sales prices for the GTX 980 and 970 are flat sequentially, with the GTX 960 down 1% quarter over quarter. All three are year-old cards. ASPs for the GTX Titan X are up 7% quarter over quarter with only three SKUs now available. “This suggests that demand is outstripping supply for these cards, which include scientific and academic applications,” Ing wrote. He expects prices to surge as Nvidia refreshes its Pascal series later this year. Ing reiterated a 39 price target on Nvidia stock. He noted that bears are “overly focused” on Nvidia gaming’s high exposure to China — about 40% of gaming sales in August. “Gaming growth is more driven by share gains against traditional entertainment consumption rather than macro,” he wrote. “We note that original equipment manufacturer sales were less than 10% of sales last quarter.” Nvidia stock surged 70% over four months between August and December. But shares have fallen lately, and Nvidia stock is now 24% off its 2015 high of 33.94 achieved Dec. 30.  

Tesla Stock Drops Fast As Model S Reliability Dinged

Tesla Motors (TSLA) stock plunged Tuesday after Consumer Reports said its Model S electric car was not so hot in terms of reliability. Meanwhile, other automakers such as General Motors (GM) and Honda Motor (HMC) struggled with in-car entertainment systems and other new technologies, while Fiat Chrysler (FCAU) brands continued to hold near the bottom. Model S reliability “lags its high performance,” review-site Consumer Reports said in its 2015