CEVA Inc. (CEVA) – Is It Too Late to Buy???
California-based leading licensor of signal processing IP technology CEVA Inc. (CEVA, $26.54, up $3.48) surged 15.09% after it reported 1st quarter results that beat on earnings and revenue, and it gave a bullish forecast. For the quarter ending March 31, it reported adjusted earnings per share (EPS) of $0.17 on $16.5 million in revenue, compared to EPS of $0.08 on $13.8 million in revenue a year ago. Analysts had expected EPS of $0.16 on $16.3 million in revenue. EPS was helped by higher licensing and royalty revenue. For the 2nd quarter, the company forecasts EPS of $0.17-$0.19 on $16.5-$17.5 million in revenue. Analysts are expecting EPS of $0.15 on $15.9 million in revenue. For full year fiscal 2015, the company had EPS of $0.53 on $59.5 million in revenue, compared to EPS of $0.35 on $50.8 million in revenue a year ago. For full year fiscal 2016, analysts are expecting EPS of $0.76 on $68.7 million in revenue.
The $542.33 million company’s semiconductor chips are used in smartphones, automobiles, and cameras worldwide. Its main research and development facility is in Herzliya, Israel. During the 1st quarter, it signed 11 license agreements, including three with first-time customers. Licensing and related revenue was $8.6 million, or 52.1% of 1st quarter revenue. The company has over 300 licenses. Analysts give the stock a 1-year price target of $28.00, but that could rise in the near future. High target is $32. The stock has a trailing PE of 88.76, forward PE of 27.00, PEG of 1.13, and price/sales of 7.94. Short interest is low at 4.87%, which means that short sellers probably do not think the stock will fall.