CEVA Earnings: Here’s Why Investors are Happy Now

CEVA Inc. (NASDAQ:CEVA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.36%.

CEVA Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 21.05% to $0.15 in the quarter versus EPS of $0.19 in the year-earlier quarter.

Revenue: Decreased 5.81% to $12.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CEVA Inc. reported adjusted EPS income of $0.15 per share. By that measure, the company beat the mean analyst estimate of $0.13. It beat the average revenue estimate of $11.96 million.

Quoting Management: Gideon Wertheizer, Chief Executive Officer, stated: “Our strong performance in licensing activities for the second quarter was a direct result of our strategy to expand beyond the cellular baseband market. During the quarter, we successfully completed two comprehensive agreements for our CEVA-MM3101 multimedia platforms with key OEMs in the mobile space who are expected to utilize our technology to develop their own proprietary multimedia processing chips. These agreements illustrate our ability to successfully capitalize on emerging technology trends in photography, vision and audio, and build the foundations for our future royalty growth. In addition, we extended our relationship with a key customer in the cellular baseband market, reinforcing our position in the 3G and LTE markets.”

Key Stats (on next page)…

EPS increased 15.38% from $0.13 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.18 to a profit $0.17. For the current year, the average estimate has moved down from a profit of $0.67 to a profit of $0.64 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)