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Ceva Q2 revenue beats analyst estimates on AI demand

Ceva Q2 revenue beats analyst estimates on AI demand


Overview

  • US silicon IP licensor's Q2 revenue grew 13% yr/yr, beating analyst expectations

  • Adjusted EPS for Q2 beat analyst expectations

  • Licensing revenue reached highest level in three years, driven by AI and connectivity demand


Result Drivers

  • AI AND CONNECTIVITY DEMAND - Co said licensing revenue growth was driven by strong demand for AI and connectivity technologies

  • NEW CUSTOMER AGREEMENTS - Co signed ten IP licensing agreements, including two with first-time customers and two directly with OEMs

  • ROYALTY TRENDS - Royalty revenues were supported by strong wireless connectivity shipments, ramp of automotive AI programs and improving smartphone royalties


Company press release: ID:nPn30WTb1a


Key Details

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


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the semiconductors peer group is "buy"

  • Wall Street's median 12-month price target for CEVA Inc is $49.00, about 26.7% above its August 7 closing price of $38.67

  • The stock recently traded at 55 times the next 12-month earnings vs. a P/E of 51 three months ago


Reuters Recommended Reads

  • Aug 10 - Key Republican urges US to stop any advanced chips from reaching sanctioned Chinese firms

  • Aug 10 - South Korea to launch $3.5 bln chip fund, speed development of semiconductor hubs

  • Aug 10 - Meta launches new AI model as Zuckerberg champions open-weight push


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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