Mobileye (MBLY) Stock Gains Ahead of Tuesday's Q2 Results

Mobileye (MBLY) is scheduled to report 2016 second-quarter financial results before the market open on Tuesday.
By Rachel Graf ,

NEW YORK (TheStreet) -- Shares of Mobileye (MBLY) are up 2.77% to $49.75 in late-afternoon trading on Friday as analysts expect the company to report a year-over-year increase in second-quarter earnings and revenue before Tuesday's market open. 

Analysts surveyed by Thomson Reuters are looking for adjusted earnings of 15 cents per share on $77.3 million in revenue for the most recent period. 

Last year Mobileye reported adjusted earnings of 10 cents per share on $52.8 million in revenue for the 2015 second quarter.

Pacific Crest maintained its "sector weight" rating on the stock ahead of the results.

"While the path to autonomous driving beyond 2019 may continue to dominate the narrative on MBLY, with shares trading at 46x consensus 2017 EPS, we believe there is significant optimism now built into the name in light of the BMW/Intel partnership," the firm wrote in a note released this morning.

Pacific Crest said it remains nervous about Mobileye's long-term leverage in the partnership, and thinks shares could see "slight downward" multiple compression as longer-term autonomous initiatives are still a long way off. 

Based in Israel, Mobileye develops computer vision and machine learning, data analysis, localization and mapping for advanced driver assistance systems (ADAS) and autonomous driving technologies.

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C-.

Mobileye's strengths such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity are countered by weaknesses including a generally disappointing performance in the stock itself and premium valuation.

You can view the full analysis from the report here: MBLY

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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