Mobileye N.V. (NYSE: MBLY) posted second-quarter 2014 results before markets opened on Thursday. The maker of advanced camera safety systems for automobiles posted adjusted diluted earnings per share (EPS) of $0.05 on revenues of $33.65 million. In the same period a year ago, the company posted EPS of $0.03 on revenues of $17.66 million. The consensus estimate from Thomson Reuters called for EPS of $0.05 on revenues of $33.14 million. This is the company’s first earnings report since coming public in early August and covers the period through June.

Last week we reported on the company’s exit from the quiet period following its initial public offering (IPO). Seven analysts’ firms rated the stock a Buy and just two rated it Neutral. There were no Sell ratings. Price targets ranged from a low of $42 to a high of $46. Shares were trading around $38 when the article was published, and they closed at nearly $47 on Wednesday night after posting a new 52-week high of $49.44 earlier in the day. The stock’s IPO price was $25 a share and trading opened that day at $36.

Unfortunately the earnings report caused the stock to fall, and unless the conference call scheduled for later Thursday morning reveals anything different, we’ll have to put the tumbling share price down to profit-taking. Shares should rise later in the day as other investors buy the dip.

READ ALSO: 4 Chip Stocks to Buy That Don’t Need PC Growth for a Strong Finish to 2014

It is worth recalling that Mobileye was turning a profit at the time the company held its IPO. It is likely that what’s taking the shares down is the belief that growth is not near-term but further out. Mobileye’s CEO said:

Our strong revenue growth was driven by continued robust market demand resulting from the ongoing move toward regulating ADAS as well as the value proposition of our innovative solution, which bundles multiple applications into a single package. … Looking forward, we have numerous opportunities to continue to drive growth, including creating new and enhanced applications to capitalize on the advantages of our complex technology. Longer term, our position in the market will enable us to benefit significantly from the large and growing semi-autonomous and autonomous driving trend.

The company did not offer any guidance, but the consensus estimate for third-quarter EPS is $0.04 on revenues of $29.83 million. For the full year, analysts expect EPS of $0.18 on revenues of $131.17 million.

According to the company’s IPO filing, its technology will be available in 160 different car models from 18 different manufacturers by the end of this year, and Mobileye expects the technology to spread to 237 models from 20 carmakers by the end of 2015. The consensus estimates for 2015 put EPS at $0.39 and revenues at $220.73 million. That seems cautious.

Mobileye’s shares were down about 0.9% in Thursday’s premarket trading, at $47.19 in a post-IPO range of $31.11 to $49.44. The consensus price target from Thomson/First Call is $45.50.

READ ALSO: Toyota and Chrysler Lead Automaker Sales in August

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.