-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Mobileye Global (MBLY) posted Q1 adjusted EPS of $0.12 vs. $0.08 (+51%), ahead of the $0.09 consensus. The quarter was characterized by stronger-than-expected sales offset by weaker-than-expected margins, as revenue rose 27% to $558M ($38M above consensus) and adjusted gross margin contracted 240 bps to 66% (20 bps below consensus). EyeQ volumes were up 27% Y/Y, which drove the beat. MBLY raised prior 2026 guidance for revenue and adjusted operating profit to $1.935B-$2.015B and $185M-$235M, respectively, from $1.90B-$1.98B and $170M-$220M. MBLY also announced a $250M share repurchase program. MBLY ended Q1 with total cash and equivalents of $1.34B versus only $51M of debt. Expectations were low heading into the release and the stock has seen a surge in short interest in recent months to ~17% of the float. In our view, sentiment toward the name had become overly bearish (especially considering MBLY's backlog, gross margins, and large net cash position), now setting up the stock for a significant short squeeze.