The Ticker / Mobileye Earnings Beat Wall Street Forecasts

Stratasys posts big loss after MarkerBot writedown; Noble buys Texas energy properties; Tel Aviv shares show little movement.

Net profits at Mobileye, the company that makes collision-avoidance technology, rose by almost a third from a year ago in the first quarter and beat Wall Street’s expectations. The company said net profit, after discounting for one-time factors, reached $18.2 million, or 8 cents a share, up from $12.6 million, or 6 cents, a year ago while revenue climbed 28% to $45.6 million. Profit exceeded the average estimate of analysts surveyed by Zacks Investment Research for earnings of 7 cents a share and revenues of $44.5 million. Mobileye said it had cash of $426.2 million at the end fo the first quarter, up from $375.1 million at the end of December. Mobileye shares, which went public last August at $25, were up 3.5% at $47.41in New York late morning local time. 

Stratasys posts big loss after MarkerBot writedown

Profit at Stratasys, the U.S.-Israeli maker of 3D printing technology, on Monday posted a deep first-quarter loss in line with the difficulties the nascent industry is suffering. After taking a $194 million impairment on its MakerBot unit, which it is in the process of reorganizing, the company has a loss of $216.3 million, or $4.24 a share, compared with a year-earlier profit of $4.1 million, or 8 cents. Discounting for MakerBot and other items, Stratasys squeezed out a profit of $2 million, or 4 cents a share, but that was down from $20 million, or 40 cents, a year earlier. On the other hand, revenue grew 14% to $172.7 million, the company said, and CEO David Reiss said he remains bullish. Last week rival 3D Systems posted a $13 million first-quarter loss and withdrew its 2015 guidance thanks to shrinking demand for its printers. Stratasys reiterated the full-year revenue and adjusted profit guidance it offered investors last month, but increased its loss guidance to between $4.38 and $5 a share from $3.50 to $4.79. Earnings were more or less in line with the warning Stratasys had issued earlier, so that its shares were trading 1% higher at $35.67 late morning local time in New York. 

Noble buys Texas energy properties

Noble Energy said Monday it would acquire Rosetta Resources for about $2 billion in stock in a move the market sees as a step toward reducing its exposure to its holdings in Israel’s Leviathan and Tamar natural gas fields. The deal will give Noble entry into the Eagle Ford Shale field and the oil and gas region of Permian Basin in Texas with the potential to produce about 1 billion barrels of oil equivalent. Rosetta shareholders will receive 0.542 Noble Energy shares for each share held, or $26.62 a share, based on Noble’s closing price of $49.12 on Friday. Noble will also assume Rosetta’s net debt of $1.8 billion as of March 31. “The purchase does add diversification into the Permian and Eagle Ford, which reduces NBL’s exposure to Israel,” Barclays analysts wrote in a note. The company, which gets more than a third of its total sales volume from outside the United States, is facing opposition from Israel’s antitrust authorities. Noble shares plummeted 7.3% to $45.55 late morning local time in New York. 

Tel Aviv shares show little movement

Tel Aviv shares traded mixed on Monday, with Bezeq and bank shares down and property and tech shares showing gains. The benchmark TA-25 index edged down 0.09% to 1,649.31 points, while the TA-100 was unchanged at 1,436.46, all on turnover of 1.15 billion shekels ($300 million). Leading property shares higher, Azrieli Group finished up 3% to 162.90 shekels and Bayside, fresh from a 9% increase in first-quarter net operating income reported the day before, rose 2.3% to 1,272. Among tech shares, Matrix rose 4.7% to 21.47 shekels after it reported Monday an 8.5% rise in net profit to 25 million shekels. But Bezeq tumbled 2.4% to 6.97 and Frutarom lost 2.2% to 1251.10, a day after rising 3%. In the fixed-income market, the government’s Shahar bond due in March 2024 fell 0.59% to raise its yield to 1.171%. Its Galil bond was down 0.44% to raise its yield to a minus-0.08%.