Fubotv earnings beat by $0.10, revenue topped estimates
On Friday, Oppenheimer analyst Martin Yang increased the price target for CEVA Inc. (NASDAQ: CEVA) shares to $40, up from the previous target of $36, while maintaining an Outperform rating on the stock. CEVA's fourth-quarter results for 2024 exceeded expectations, with reported revenue and adjusted earnings per share (EPS) at $29.2 million and $0.11, respectively. These figures surpassed the Street's estimates of $27.5 million in revenue and an EPS of $0.11. According to InvestingPro data, the company maintains impressive gross profit margins of 88.56% and holds more cash than debt on its balance sheet, suggesting strong financial fundamentals.
The company's performance was bolstered by several significant agreements, including long-term connectivity deals with a leading microcontroller unit (MCU) company and a prominent U.S. smartphone original equipment manufacturer (OEM). Additionally, CEVA secured a first-time customer agreement for its artificial intelligence digital signal processors (AI DSPs) and neural processing units (NPUs), as well as a licensing deal related to sensor fusion software for mobile products. InvestingPro subscribers can access 6 additional key insights about CEVA's business model and growth prospects through exclusive ProTips.
CEVA's royalty growth was driven by shipments amounting to 623 million units, which marked a 9% increase. Looking ahead, the management of CEVA has provided revenue growth guidance for the fiscal year 2025, projecting a 9% increase. Profitability is expected to grow by 50% year-over-year.
Yang's optimistic stance on CEVA is rooted in the company's positioning within the secular trends of connectivity and edge devices. The analyst anticipates growth in device numbers, higher content per device, increased average selling prices (ASPs), and the resulting operating leverage as factors contributing to CEVA's positive outlook. The raised price target to $40 from $36 reflects this bullish perspective on the company's future financial performance.
In other recent news, Ceva (NASDAQ:CEVA), Inc. has made significant strides in its business operations. The company has licensed its Wi-Fi 6 IP to ListenAI Technology for integration into ListenAI's edge AI processors. This collaboration aims to enhance the performance of smart devices that use advanced connectivity, addressing the growing need for high-performance, reliable, and power-efficient connectivity in the edge AI market.
Furthermore, Ceva has expanded its board of directors with the addition of Amir Faintuch, a seasoned technology veteran. Faintuch's addition as an independent director and member of the Strategic Committee is expected to bring valuable insights to Ceva's strategic direction, particularly as the company navigates growth in the smart edge AI sector.
These are recent developments for Ceva, a company known for its wireless connectivity IPs and scalable Edge AI NPU IPs. The company's technologies are integral to a variety of advanced products, from AI-integrated wearables to autonomous vehicles and 5G networks. Ceva's mission is to enable smarter and more connected technologies worldwide. The company's IPs power over 18 billion smart edge products.
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