US$33.50 - That's What Analysts Think CEVA, Inc. (NASDAQ:CEVA) Is Worth After These Results

CEVA, Inc. (NASDAQ:CEVA) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The statutory results were mixed overall, with revenues of US$28m in line with analyst forecasts, but losses of US$0.10 per share, some 3.4% larger than the analysts were predicting. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from CEVA's five analysts is for revenues of US$125.0m in 2026. This would reflect a notable 16% increase on its revenue over the past 12 months. Per-share statutory losses are expected to explode, reaching US$0.14 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$126.2m and earnings per share (EPS) of US$0.033 in 2026. While the analysts have made no real change to their revenue estimates, we can see that the consensus is now modelling a loss next year - a clear dip in sentiment compared to the previous outlook of a profit.

See our latest analysis for CEVA

Although the analysts are now forecasting higher losses, the average price target rose 5.2% to 31.83333, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values CEVA at US$40.00 per share, while the most bearish prices it at US$21.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CEVA's past performance and to peers in the same industry. One thing stands out from these estimates, which is that CEVA is forecast to grow faster in the future than it has in the past, with revenues expected to display 13% annualised growth until the end of 2026. If achieved, this would be a much better result than the 1.4% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 19% per year. Although CEVA's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The biggest low-light for us was that the forecasts for CEVA dropped from profits to a loss next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on CEVA. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple CEVA analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of CEVA's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.