Mobileye (MBLY) reported faster earnings and revenue growth early Wednesday that topped fourth-quarter expectations, sending shares higher.
Former partner Tesla (TSLA) will wheel out its Q4 financials after the closing bell.
Mobileye, a leading developer of advanced driver-assistance technology, reported revenue grew 46% vs. a year earlier to $104.6 million, beating the consensus estimate of $96.4 million. Earnings per share minus items rose 47% to of 22 cents, beating views for 20 cents, as polled by Thomson Reuters.
That ended a four-quarter string of decelerating EPS and sales growth.
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Mobileye shares climbed 2.8% to close at 47.42 on the stock market today. The stock, which closed Tuesday just above a cup-with-handle buy point of 45.03, has seen dramatic saw-toothed action since its August 2014 initial public offering, peaking at 64.48 in August 2015 and dropping to 23.57 in February of last year.
Mobileye's core products are chip and software technology that provides image processing and analysis used in cars with camera-based systems for assisted driving.
Tuesday, Mobileye announced it will partner with BMW (BMWYY) in the development of advanced mapping technology. It said BMW automobiles entering the market in 2018 will include Mobileye's camera-based map technology, called Road Experience Management.
The road data will be shared with digital mapping company Here, owned by a consortium of German automakers, to develop a precise global map that can be used for hands-free driving and location services. Here poses a threat to Google Maps owner Alphabet (GOOGL).
The Mobileye deal with BMW is similar to one that Mobileye and Volkswagen (VLKAY) announced last week. Digital maps are a crucial piece of technology for the development of self-driving vehicles.
The three owners of Here are BMW, Mercedes-Benz and Audi, which together acquired the mapping business from Nokia (NOK) in August 2015 for $3 billion. Volkswagen is the parent company of Audi. Intel agreed to buy a 15% stake in Here earlier this year.
Mobileye, BMW and Intel (INTC) have an alliance to build self-driving cars, with road testing set to begin this year. Mobileye and auto parts giant Delphi (DLPH) have been working on autonomous driving systems for other automakers. Mobileye is part of the IBD 50.
Electric-car maker Tesla is set to report fourth-quarter earnings after the market close. Analysts will be looking for details on the production and deliveries of the Tesla Model 3 sedan, as well as progress on its newly opened battery-production Gigafactory in Nevada and more data on the company's acquisition of SolarCity.
Tesla and Mobileye ended their partnership last year, reportedly because of technology differences regarding the development of self-driving cars. The split came after the death of a Tesla driver in Florida who was using Tesla's Autopilot feature, but the National Highway Traffic Safety Administration in January announced it was ending its investigation of the accident, in essence determining that Tesla was not at fault.
Tesla shares fell 1.4% to close the regular trading session at 273.51, but shares surged after hours by 2% to 279 in recent trades.
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