CEVA (CEVA) Stock Forecast & Price Target

CEVA Inc's positive outlook is largely supported by a rebound in handset unit shipments and the integration of its intellectual property into AI-driven network edge devices, which is enhancing revenue potential. The company's royalty revenue, although reflecting a slight year-over-year decline, showed a notable sequential increase of 16%, accounting for 41% of total revenue, indicating strong demand and shipment growth in the U.S. Furthermore, management anticipates a double-digit percentage increase in both Non-GAAP net income and fully diluted Non-GAAP EPS for FY2025, driven by robust licensing momentum and expected royalty acceleration in the second half of the fiscal year.

CEVA Inc. reported a significant year-over-year decline in non-GAAP earnings per share (EPS), dropping to $0.07 from $0.15, which indicates a diminishing profitability trend despite slightly surpassing consensus and internal estimates. Additionally, the company's revenue for the second quarter of FY25 was $25.7 million, reflecting a 9.6% decrease compared to the same period last year, even though it showed a quarter-over-quarter increase of 6%. These financial metrics highlight concerns regarding CEVA's revenue resilience and earnings stability, contributing to a negative outlook on the stock.