mblyMobileye NV (NYSE:MBLY) announced financial results for the quarter ended September 30, 2016.

“Our core business performed well in the third quarter,” stated Ziv Aviram, co-founder, president and chief executive officer of Mobileye. “Strategically, we continue to see rising interest for higher-level autonomous vehicle technology. Most new customer requirements for future programs now include a semi-autonomous feature-set in addition to Advanced Driver Assist System safety features. We have also seen an uptick in discussions relating to Fully Autonomous programs on the heels of our two recently-announced Level 4 programs with BMW and Delphi. I am pleased that our customers continue to recognize the value Mobileyeprovides across the entire driving spectrum – from Driver Assist to Fully Autonomous.”

Third Quarter 2016 Financial Highlights

  • Revenue: Total revenue for the third quarter of 2016 was $94.9 million, compared to $70.6 million in the prior-year period.  Within total revenue, original equipment manufacturing (OEM) revenue was $72.6 million, compared to $60.8 million in the prior-year period. EyeQ chip volume increased to 1,553 thousand EyeQ units, compared to 1,351 thousand units in the prior-year period.  The EyeQ Average Selling Price (ASP) per unit for the third quarter of 2016 was $45.50, up from $43.50 during the same period last year.  After market (AM) revenue contributed the remaining $22.3 million of total revenue for the third quarter of 2016 compared to $9.8 million in the prior-year period.
  • Net Income and Earnings per Share:  GAAP net income for the third quarter of 2016 was $27 million, or $0.11 per diluted share. This compares to GAAP net income of $24.2 million, or $0.10 per diluted share for the third quarter of 2015. GAAP results included share-based compensation expense, net of tax, of $19 million for the third quarter of 2016 compared to $10.6 million for the third quarter of 2015.

    Non-GAAP net income for the third quarter of 2016 was $46 million, or $0.19 per share, based on 238.5 million weighted average diluted shares outstanding.  This compares to non-GAAP net income of $34.8 million, or $0.15 per share, based on 238.5 million weighted average diluted shares outstanding during the third quarter of 2015. Non-GAAP net income excludes share-based compensation expense, and the applicable income tax effect. See the reconciliation information below for a more detailed discussion of this non-GAAP measure.

  • Cash and Cash Flow: At September 30, 2016, Mobileye had cash, cash equivalents, restricted cash and marketable securities of $584.4 million, compared to $543.1 million at June 30, 2016.

    The company generated $38.6 million in net cash from operating activities for the third quarter of 2016 compared to $26.2 millionfor the third quarter of 2015. The company generated $36.9 million in non-GAAP free cash flow for the 2016 third quarter compared to $25.6 million for the comparable 2015 quarter. Non-GAAP free cash flow represents GAAP net cash provided by operating activities minus capital expenditures. See the reconciliation information below for a more detailed discussion of this non-GAAP measure.

A reconciliation of the non-GAAP financial measures to GAAP measures has been provided in the financial tables included in this press release. An explanation of the non-GAAP financial measures and how they are calculated is included below under the heading “Non-GAAP Financial Measures.” The Company has updated its reconciliation of GAAP to non-GAAP net income taking into account recent Securities and Exchange Commission (“SEC”) Staff guidance and added to the reconciliation the applicable tax effect on share-based compensation expense, for all presented periods. (Original Source)

Shares of Mobileye are down nearly 1% to $39.25 in pre-makret trading. MBLY has a 1-year high of $51.15 and a 1-year low of $23.57. The stock’s 50-day moving average is $39.99 and its 200-day moving average is $42.51.

On the ratings front, MBLY has been the subject of a number of recent research reports. In a report issued on October 20, Piper Jaffray analyst Alexander Potter maintained a Buy rating on MBLY, with a price target of $60, which implies an upside of 51% from current levels. Separately, on September 20, Suntrust Robinson Humphrey’s William Stein initiated coverage with a Buy rating on the stock and has a price target of $63.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Alexander Potter and William Stein have a yearly average loss of 10.5% and a return of 5.4% respectively. Potter has a success rate of 39% and is ranked #3922 out of 4214 analysts, while Stein has a success rate of 59% and is ranked #1332.

Overall, 6 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $72.00 which is 81% above where the stock closed yesterday.

Mobileye NV engages in the designing and development of software and related technologies for camera-based advanced driver assistance systems. It operates through the following business segments: Original Equipment Manufacturing and After Market. The Original Equipment Manufacturing segment supplies systems on Chip, which includes core intelligence to be ultimately implemented within new vehicles through Tier 1 manufacturers who are system integrators to the automotive industry. The After Market segment engages in selling complete system, which offers advanced driver assistance functions to customers being primarily fleet commercial vehicles, fleet management system providers, new vehicle dealers and importers either directly, through distributors or through insurance companies.