CEVA (CEVA) Stock Forecast & Price Target

CEVA Inc. is experiencing a positive growth trajectory driven by increased demand for its signal-processing intellectual property, particularly in AI integration at the network edge, and a rebound in handset unit shipments, including new Apple iPhones utilizing CEVA's technology. The company's royalty revenue reached $10.7 million, accounting for 41% of total revenue, and showed a healthy sequential increase of 16% quarter-over-quarter, reflecting enhanced shipments in the U.S. Furthermore, management anticipates a double-digit percentage increase in Non-GAAP net income and fully diluted Non-GAAP EPS for FY2025, indicating sustained momentum due to strong licensing activities and royalty growth, particularly in 5G, Wi-Fi, and cellular IoT markets.

CEVA Inc. reported non-GAAP EPS of $0.07 for 2QFY25, a decline from $0.15 in the previous year, indicating a contraction in profitability despite meeting consensus and estimates. The company's revenue decreased by 9.6% year-over-year to $25.7 million, although it showed a quarter-over-quarter increase of 6%, which reflects ongoing challenges in sustaining year-over-year growth. Notably, non-GAAP licensing and related revenue fell 13% year-over-year to $15 million, contributing to an overall revenue downturn due to the absence of a prior year's catch-up payment that inflated results in 2QFY24.