Mobileye cuts annual revenue forecast; shares slump

(Reuters) – Mobileye Global (NASDAQ:) cut its annual revenue forecast on Thursday, as the self-driving technology company reels under weak demand for its driver-assistance chips in the wake of production cuts at global automakers.

Shares of the company, which have shed more than 50% of their value so far this year, slumped more than 11% in premarket trading.

Hurt by a choppy consumer demand environment, automakers are keeping a tight check on production levels as they come off a pandemic-spurred inventory glut, further compounded by slowing demand for electric vehicles.

That has dented business at auto industry suppliers such as Mobileye, which has partnerships with more than 50 original equipment manufacturers including Ford (NYSE:), Honda (NYSE:) and Volkswagen (ETR:) for its ADAS technologies.

The Israel-based company now expects full-year revenue of $1.60 billion to $1.68 billion, compared with $1.83 billion to $1.96 billion previously. Analysts on average estimate $1.87 billion, according to LSEG data.

The company reported revenue of $439 million in the second quarter, compared with $454 million a year earlier and analysts’ average estimate of $424.8 million.