IP licensing firm Adeia misses Q3 revenue estimates, cuts guidance, files lawsuit against AMD

Reuters
Nov 03
IP licensing firm <a href="https://laohu8.com/S/ADEA">Adeia</a> misses Q3 revenue estimates, cuts guidance, files lawsuit against <a href="https://laohu8.com/S/AMD">AMD</a>

Overview

  • Adeia Q3 revenue of $87.3 mln missed analyst expectations

  • Adjusted EPS for Q3 was $0.28, missing consensus estimates

  • Company files patent infringement litigation against AMD, affecting revenue guidance

Outlook

  • Adeia revises 2025 revenue guidance to $360 mln - $380 mln from $390 mln - $430 mln

  • Company adjusts 2025 net income forecast to $52.4 mln - $71.6 mln

  • Adeia expects 2025 adjusted EBITDA between $202.3 mln and $218.3 mln

Result Drivers

  • NON-PAY-TV REVENUE GROWTH - Non-Pay-TV recurring revenue grew 31% YoY, driven by new agreements in semiconductors and media markets

  • LONG-TERM DEALS - Closed long-term media deals, including a renewal with a Pay-TV customer and a new e-commerce customer

  • AI INVESTMENT - Continued investment in AI and innovation, recognized with an industry award for hybrid bonding technology

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$87.30 mln

$100.70 mln (4 Analysts)

Q3 Adjusted EPS

Miss

$0.28

$0.36 (3 Analysts)

Q3 EPS

$0.08

Q3 Net Income from Continuing Operations

$8.80 mln

Q3 Adjusted EBITDA

Miss

$50.70 mln

$56.60 mln (2 Analysts)

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the it services & consulting peer group is "buy"

  • Wall Street's median 12-month price target for Adeia Inc is $17.50, about 2.6% above its October 31 closing price of $17.04

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX6XDZhJ

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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