Ceva Q2 revenue beats analyst estimates on AI demand
CEVA•Q2 results beat estimates
Ceva said second-quarter revenue grew 13% year over year, beating analyst expectations. Adjusted earnings per share also beat analyst expectations.
Key figures
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $29 mln | $28.17 mln (10 Analysts) |
| Q2 Adjusted EPS | Beat | $0.08 | $0.07 (10 Analysts) |
| Q2 Loss Per Share | $0.10 | ||
| Q2 Net Loss | $2.90 mln | ||
| Q2 Adjusted Gross Margin | 88.00% | ||
| Q2 Adjusted Operating Income | $3.10 mln |
New customer agreements and analyst views
Ceva said it signed 10 IP licensing agreements during the quarter, including two with first-time customers and two directly with OEMs.
The current average analyst rating on the shares is "buy," with 8 "strong buy" or "buy," 2 "hold" and no "sell" or "strong sell" recommendations. The median 12-month price target is $49.00, about 26.7% above the August 7 closing price of $38.67. The stock recently traded at 55 times next 12-month earnings, versus 51 three months ago.
AI and connectivity drove licensing revenue
Licensing revenue reached its highest level in three years, driven by demand for AI and connectivity technologies. The company said royalty revenue was supported by strong wireless connectivity shipments, ramp-up of automotive AI programs and improving smartphone royalties.
