Business in Brief: Mobileye Shares Tank on Disappointing 2016 Outlook

TowerJazz reports strong fourth quarter earnings; Itruran to delist from Tel Aviv Exchange; Pharma stocks lead TASE lower.

Stock prices flash on an electronic screen displaying world clocks at the Tel Aviv Stock Exchange (TASE) in Tel Aviv, Israel, on Thursday, Dec. 11, 2014.
Bloomberg

Mobileye shares tank on disappointing 2016 outlook

Shares of Mobileye, the collision-prevention technology company, were tanking Wednesday after its earnings outlook disappointed the markets.

The company said the fourth-quarter earnings nearly tripled to $36.6 million, or 15 cents a share, from $13.3 million, or 6 cents, a year earlier after adjusting for the costs of stock options. Revenues, meanwhile, rose to $71.8 million from $39.7 million. That put both figures slightly over the average estimate of analysts surveyed by Zacks Investment Research for earnings of 14 cents a share and revenue of $70.7 million.

However, in a conference call with analysts, Mobileye said revenues for 2016 would be somewhere between $336 million and $340 million, less than the consensus on Wall Street for $345 million. On earnings per shares, the company projected a range of 68-69 cents, less than the 70 cents analysts had been forecasting.

Mobileye shares were down 6% to $27.03 late morning local time in New York. (Omri Zerachovitz)

TowerJazz reports strong fourth quarter earnings

Boosted by rising demand for sensors, power management products and wireless connectivity, chip maker TowerJazz turned in better-than-expected fourth quarter results Wednesday and predicted strong growth in 2016.

The company said it earned 70 cents a share, excluding one-off items, compared with 54 cents at the same time in 2014, while revenue rose 8% to a record $254.6 million. The company had been forecast to earn 63 cents on revenue of $252.4 million, according to Thomson Reuters I/B/E/S.

TowerJazz enjoyed growth of over 25% in its main markets of camera sensors, power management and radio frequency (RF) wireless connectivity. “Our product strategy surrounds the trends that drive the Internet of things,” CEO Russel Ellwanger told Reuters. The company predicted revenue of about $276 million in the current quarter, above analysts’ average forecast of $256.4 million.

TowerJazz shares ended 0.4% higher at 51.60 shekels ($13.15). (Reuters)

Itruran to delist from Tel Aviv Exchange

Ituran Location & Control said Wednesday its board approved a plan to delist its shares from trading on the Tel Aviv Stock Exchange, citing costs and other factors.

The maker of vehicle antitheft technology said it would continue trading on the Nasdaq stock market, enabling it to save time and money by being answerable only to U.S. securities regulators. Ituran has become an increasingly international company, added Co-CEO Eyal Sheratzky. “We believe that by consolidating our shares’ listing onto a single and leading global stock market where our peers are also traded, it will also improve our trading and enhance shareholder value.”

Delisting, which marks another big blow to the TASE’s effort to add more companies and boost trading volumes, will take place within three months, the company said.

Ituran shares closed down 8.2% at 67.20 shekels ($17.12). (TheMarker Staff)

Pharma stocks lead TASE lower

Pharmaceutical shares drove the Tel Aviv Stock Exchange lower Wednesday.

Teva Pharmaceuticals lost 2% to end at 221.80 shekels ($56.52), Opko Health fell 4.2% to 33.83 and Mylan lost 3.6% to 176.70. The benchmark TA-25 and the TA-200 both ended about 0.7% lower at 1,420.76 and 1,224.85, points, respectively, on turnover of 1.17 billion shekels. Other big losers included SodaStream, which ended down 4.1% to 56.61 and Jerusalem Economy Corporation, which lost 4.8% to end at 4.40 after its board approved a 700 million-shekel offering of shares and warrants on Tuesday.

Ormat Technologies, however, rose 2% to finish at 146.70 after it reported that net income attributable to shareholders more than tripled in the fourth quarter from a year ago to $23 million. Spuntech, a maker of nonwoven fabrics, led TA-100 stocks higher on a 4.7% advance to 15.98 shekels after it said it won a contract worth an estimated $75 million over five years.

In foreign currency trading, the dollar strengthened 0.5% to a Bank of Israel rate of 3.927. (Omri Zerachovitz)