Zacks Research Issues Pessimistic Estimate for OLED Earnings

Key Points

• Zacks Research lowered Universal Display’s FY2027 EPS estimate to $4.77 from $4.78 and maintains a “Hold” rating; analysts’ consensus view is also “Hold,” with an average price target of $114.
• Universal Display shares opened at $75.10, near the lower end of their 52-week range of $70.77–$153.38. The company’s latest quarterly results exceeded EPS expectations but missed revenue estimates, with revenue down 11.4% year over year.
• The company pays a quarterly dividend of $0.50 per share, equivalent to a 2.7% annual yield, while institutional investors and hedge funds own 78.19% of the outstanding stock.

Universal Display Corporation (NASDAQ:OLED - Free Report) - Equities research analysts at Zacks Research cut their FY2027 earnings per share estimates for shares of Universal Display in a report released on Monday, October 12th. Zacks Research analyst Team now anticipates that the semiconductor company will earn $4.77 per share for the year, down from their prior forecast of $4.78. Zacks Research 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 2028 earnings at $1.11 EPS, Q2 2028 earnings at $1.09 EPS and FY2028 earnings at $5.12 EPS.

A number of other research firms have also recently weighed in on OLED. Oppenheimer reaffirmed an "outperform" rating and set a $120.00 price target (down from $130.00) on shares of Universal Display in a report on Friday, July 31st. Susquehanna decreased their price objective on Universal Display from $110.00 to $90.00 and set a "neutral" rating for the company in a report on Friday, July 31st. Needham & Company LLC decreased their price objective on Universal Display from $120.00 to $100.00 and set a "buy" rating for the company in a report on Friday, July 31st. BTIG Research cut Universal Display to a "neutral" rating in a research note on Friday, July 31st. Finally, Citigroup downgraded Universal Display from a "neutral" rating to a "sell" rating and cut their price objective for the stock from $85.00 to $71.00 in a report on Thursday. Three research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $114.00.

Universal Display Stock Up 0.2%

Shares of NASDAQ:OLED opened at $75.10 on Tuesday. The company's 50-day moving average price is $82.11 and its 200 day moving average price is $86.60. The company has a market cap of $3.45 billion, a PE ratio of 18.18 and a beta of 1.53. Universal Display has a fifty-two week low of $70.77 and a fifty-two week high of $153.38.

Universal Display (NASDAQ:OLED - Get Free Report) last posted its 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 company had revenue of $152.16 million for the quarter, compared to analysts' expectations 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 last year, the business posted $1.41 earnings per share.

Universal Display Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th were given a dividend of $0.50 per share. The ex-dividend date was Wednesday, September 16th. This represents a $2.00 dividend on an annualized basis and a yield of 2.7%. Universal Display's dividend payout ratio (DPR) is presently 48.43%.

Hedge Funds Weigh In On Universal Display

A number of large investors have recently made changes to their positions in OLED. XXEC Inc. bought a new position in Universal Display during the second quarter valued at about $2,508,286,000. BlackRock Inc. acquired a new stake in shares of Universal Display in the second quarter worth about $373,931,000. Primecap Management Co. CA acquired a new stake in shares of Universal Display in the second quarter worth about $190,136,000. Canada Pension Plan Investment Board bought a new stake in shares of Universal Display during the 2nd quarter worth about $31,796,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Universal Display during the 2nd quarter valued at about $27,721,000. Institutional investors and hedge funds own 78.19% of the company's stock.

Universal Display Company Profile

Universal Display Corporation develops and commercializes technologies and materials used in organic light-emitting diode (OLED) displays and lighting. The company's portfolio includes phosphorescent OLED (PHOLED) technologies, which are designed to improve display efficiency, as well as OLED material systems and related technologies.

Universal Display generates revenue primarily through licensing its OLED intellectual property and selling OLED materials, including phosphorescent emitter materials and related products.

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