Why Mobileye Global (MBLY) Stock Is Plunging Today - Mobileye Global (NASDAQ:MBLY)

Mobileye Global Inc MBLY reported first-quarter FY23 revenue growth of 16% year-on-year to $458 million, beating the consensus of $456.72 million.
EyeQ SoC-related revenue grew 11% in the quarter due to volume and ASP growth.
The Average System Price was $53.9 in Q1, up from $51.0 in the prior year, driven primarily by an increased mix of advanced products.
Gross margin expanded by 53 bps to 45%, while adjusted gross margin decreased by 571 bps to 71% due to the higher cost of its EyeQ chip which translated into higher prices for customers on a zero-margin basis. Adjusted operating margin declined by 921 bps to 27%.
Non-GAAP EPS of $0.14 beat the consensus of $0.12.
Mobileye held $1.16 billion in cash and equivalents. Future business backlog continues to grow, with FY23 ADAS design wins projected to exceed revenue of $6.7 billion.
CEO Prof. Amnon Shashua said, "Due to a number of headwinds lowering EV demand in China, we have reduced our 2023 SuperVision shipment forecast, which is negatively impacting our annual financial guidance as explained below."
Outlook: Mobileye slashed the FY23 revenue forecast to $2.065 billion - $2.114 billion, down from the prior $2.192 billion - $2.282 billion (consensus $2.25 billion).
Price Action: MBLY shares traded lower by 20.20% at $34.36 on the last check Thursday.