Zacks Research Issues Pessimistic Estimate for OLED Earnings

Key Points

• Zacks Research lowered its Universal Display EPS forecast for Q4 2026 to $1.18 from $1.19 and issued cautious estimates for several 2027–2028 periods. The firm maintained a “Hold” rating.
• Analyst sentiment has weakened, with several firms cutting price targets or ratings; the stock carries a consensus “Hold” rating and a $116.33 average price target.
• Universal Display shares opened near a 52-week low at $76.62, despite the company recently beating quarterly EPS estimates. It also declared a $0.50 quarterly dividend, equivalent to a 2.6% yield.

Universal Display Corporation (NASDAQ:OLED - Free Report) - Zacks Research dropped their Q4 2026 earnings per share estimates for shares of Universal Display in a research report issued to clients and investors on Monday, September 14th. Zacks Research analyst Team now forecasts that the semiconductor company will post earnings per share of $1.18 for the quarter, down from their previous estimate of $1.19. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Universal Display's current full-year earnings is $4.17 per share. Zacks Research also issued estimates for Universal Display's Q1 2027 earnings at $0.95 EPS, Q2 2027 earnings at $1.08 EPS, FY2027 earnings at $4.78 EPS, Q1 2028 earnings at $1.12 EPS, Q2 2028 earnings at $1.10 EPS and FY2028 earnings at $5.14 EPS.

OLED has been the topic of a number of other research reports. Citigroup dropped their price target on Universal Display from $100.00 to $85.00 and set a "neutral" rating on the stock in a research note on Monday, August 3rd. Oppenheimer reaffirmed an "outperform" rating and set a $120.00 price objective (down from $130.00) on shares of Universal Display in a research note on Friday, July 31st. Needham & Company LLC reduced their target price on shares of Universal Display from $120.00 to $100.00 and set a "buy" rating for the company in a research note on Friday, July 31st. BTIG Research cut shares of Universal Display to a "neutral" rating in a research note on Friday, July 31st. Finally, Weiss Ratings cut Universal Display from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, July 28th. Three analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $116.33.

Universal Display Stock Performance

Shares of OLED stock opened at $76.62 on Tuesday. The stock's 50-day moving average is $83.42 and its two-hundred day moving average is $89.69. Universal Display has a 1 year low of $75.89 and a 1 year high of $153.38. The firm has a market cap of $3.52 billion, a price-to-earnings ratio of 18.55 and a beta of 1.56.

Universal Display (NASDAQ:OLED - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The semiconductor company reported $1.06 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.03 by $0.03. The firm had revenue of $152.16 million during the quarter, compared to the consensus estimate of $157.54 million. Universal Display had a return on equity of 11.35% and a net margin of 32.24%.The firm's quarterly revenue was down 11.4% compared to the same quarter last year. During the same period in the prior year, the company posted $1.41 earnings per share.

Universal Display Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th will be paid a dividend of $0.50 per share. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $2.00 annualized dividend and a dividend yield of 2.6%. Universal Display's payout ratio is currently 48.43%.

Hedge Funds Weigh In On Universal Display

Several hedge funds and other institutional investors have recently modified their holdings of the company. XXEC Inc. purchased a new stake in Universal Display during the 2nd quarter worth $2,508,286,000. California State Teachers Retirement System lifted its holdings in Universal Display by 8,176.2% in the 2nd quarter. California State Teachers Retirement System now owns 4,339,198 shares of the semiconductor company's stock worth $375,731,000 after buying an additional 4,286,768 shares in the last quarter. BlackRock Inc. purchased a new stake in shares of Universal Display during the second quarter worth about $373,931,000. Primecap Management Co. CA acquired a new position in shares of Universal Display in the second quarter worth about $190,136,000. Finally, Geode Capital Management LLC boosted its holdings in Universal Display by 25.0% in the fourth quarter. Geode Capital Management LLC now owns 1,109,077 shares of the semiconductor company's stock valued at $129,537,000 after purchasing an additional 222,108 shares during the last quarter. 78.19% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Universal Display

Here are the key news stories impacting Universal Display this week:

• Neutral Sentiment: Zacks Research maintained a Hold rating on Universal Display while publishing lower estimates across several future periods. The firm now forecasts $1.18 EPS for Q4 2026, $4.78 for FY2027 and $5.14 for FY2028. These estimates remain above the current-year consensus of $4.17 EPS, but the revisions point to more cautious expectations for growth.
• Neutral Sentiment: Analysts also reduced estimates for Q1 2027 EPS to $0.95 from $0.96, Q2 2027 EPS to $1.08 from $1.12, Q1 2028 EPS to $1.12 from $1.14 and Q2 2028 EPS to $1.10 from $1.11. Zacks Research estimates
• Negative Sentiment: Universal Display shares reached a new 52-week low, reinforcing concerns about valuation, demand trends and weakening market sentiment. The stock has a one-year range of $75.89 to $153.38. Universal Display Reaches New 1-Year Low
• Negative Sentiment: The stock declined amid broad selling across the semiconductor sector, suggesting that at least part of the weakness reflected industry-wide risk reduction rather than company-specific news. Universal Display Sector-Wide Selling
• Neutral Sentiment: A separate report compared Universal Display with STMicroelectronics, offering peer context but no new company-specific operating or earnings development. Universal Display versus STMicroelectronics

Universal Display Company Profile

Universal Display Corporation NASDAQ: OLED develops and commercializes organic light-emitting diode (OLED) technologies and materials. The company's business is centered on high-efficiency phosphorescent OLED (PHOLED) technology, which is designed to improve the performance and energy efficiency of OLED displays and lighting products.

Universal Display supplies OLED emitter materials and other related products to manufacturers and provides technology licenses, technical assistance and support under agreements covering its intellectual property.

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