Universal Display (NASDAQ:OLED) Issues Earnings Results

Key Points

• Universal Display beat EPS estimates with $1.06 per share versus $1.04 expected, but revenue fell 11.4% year over year to $152.16 million and missed the $157.54 million consensus.
• Management expects full-year revenue toward the lower end of its $630 million–$670 million forecast, citing softer smartphone demand, higher component costs and lower volumes.
• Despite near-term weakness, the company pointed to long-term OLED growth across IT, automotive, TVs and advanced form factors, while returning capital through a $0.50 quarterly dividend, stock repurchases and more than $855 million in cash and investments.

Universal Display (NASDAQ:OLED - Get Free Report) posted its quarterly earnings data on Thursday. The semiconductor company reported $1.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.04 by $0.02, FiscalAI reports. The business had revenue of $152.16 million during the quarter, compared to analyst estimates of $157.54 million. Universal Display had a return on equity of 12.34% and a net margin of 34.08%.The company's revenue for the quarter was down 11.4% on a year-over-year basis. During the same period last year, the company earned $1.41 EPS.

Here are the key takeaways from Universal Display's conference call:

• Second-quarter revenue fell to $152 million from $172 million a year earlier, while net income declined to $49 million, or $1.06 per diluted share, from $67 million, or $1.41 per share.
• Management now expects full-year revenue toward the lower end of its previously issued $630 million–$670 million range, citing softer smartphone demand, higher component costs, and lower expected volumes; however, second-half revenue is still projected to exceed the first half.
• Universal Display highlighted continued long-term OLED expansion, including new Gen 8.6 manufacturing capacity, broader adoption in IT, automotive, and TVs, and growing interest in foldable and other advanced form factors, with stronger industry growth expected to resume in 2027.
• The company reported approximately $855 million in cash and investments, repurchased about $48 million of stock during the quarter, returned more than $238 million to shareholders over the past 12 months, and declared a quarterly dividend of $0.50 per share.
• Phosphorescent blue development continues to advance through customer prototypes and broader materials research, but commercialization timing remains dependent on customer roadmaps and management provided no specific timeline.

Universal Display Price Performance

OLED stock traded up $0.20 during mid-day trading on Thursday, reaching $80.36. The company had a trading volume of 1,234,295 shares, compared to its average volume of 664,872. The company has a market capitalization of $3.76 billion, a PE ratio of 17.94 and a beta of 1.54. The firm has a 50 day moving average of $85.73 and a 200 day moving average of $97.26. Universal Display has a 12 month low of $77.15 and a 12 month high of $153.38.

Institutional Trading of Universal Display

Several institutional investors and hedge funds have recently modified their holdings of the stock. Freestone Grove Partners LP purchased a new stake in shares of Universal Display in the 4th quarter worth $420,000. Lazard Asset Management LLC increased its stake in shares of Universal Display by 7.4% during the third quarter. Lazard Asset Management LLC now owns 2,761 shares of the semiconductor company's stock valued at $397,000 after buying an additional 191 shares during the period. Cresset Asset Management LLC raised its holdings in shares of Universal Display by 64.2% in the second quarter. Cresset Asset Management LLC now owns 2,512 shares of the semiconductor company's stock valued at $388,000 after acquiring an additional 982 shares in the last quarter. Schonfeld Strategic Advisors LLC bought a new stake in shares of Universal Display in the fourth quarter valued at about $370,000. Finally, Certuity LLC lifted its stake in Universal Display by 4.3% in the third quarter. Certuity LLC now owns 2,556 shares of the semiconductor company's stock worth $367,000 after acquiring an additional 105 shares during the period. Institutional investors own 78.19% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have weighed in on OLED shares. Citigroup cut their price objective on shares of Universal Display from $105.00 to $100.00 and set a "neutral" rating on the stock in a research report on Monday, May 4th. Zacks Research lowered Universal Display from a "hold" rating to a "strong sell" rating in a research report on Tuesday, April 21st. Weiss Ratings downgraded Universal Display from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday. The Goldman Sachs Group set a $135.00 price objective on Universal Display in a report on Tuesday, April 21st. Finally, Oppenheimer reduced their target price on Universal Display from $160.00 to $130.00 and set an "outperform" rating on the stock in a research note on Friday, May 1st. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $130.60.

Key Universal Display News

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

• Positive Sentiment: Universal Display reported second-quarter adjusted earnings of $1.06 per share, exceeding the $1.04 analyst consensus by $0.02. However, earnings declined from $1.41 per share in the year-earlier quarter. Universal Display Corp. Surpasses Q2 Earnings Estimates
• Positive Sentiment: The board declared a quarterly cash dividend of $0.50 per share, payable September 30 to shareholders of record on September 16. The dividend provides an ongoing shareholder-return component. Universal Display Announces Quarterly Cash Dividend
• Neutral Sentiment: Universal Display maintained strong profitability, reporting a 34.08% net margin and 12.34% return on equity, although these figures do not offset the weaker top-line outlook. Universal Display Second-Quarter Earnings Report
• Negative Sentiment: Second-quarter revenue was $152.16 million, below the approximately $157.5 million consensus estimate and down 11.4% year over year. The revenue miss is likely outweighing the modest EPS beat. Universal Display Second-Quarter 2026 Financial Results
• Negative Sentiment: Management’s fiscal 2026 revenue outlook of $630 million trails the $646.4 million analyst consensus, signaling weaker expected growth and creating the main downside catalyst for the stock. Universal Display Q2 Key Metrics

About Universal Display

Universal Display Corporation NASDAQ: OLED is a technology company specializing in organic light-emitting diode (OLED) solutions. The company develops and commercializes materials, technologies and software used in the creation of OLED displays and lighting. Its offerings include proprietary phosphorescent OLED (PHOLED) materials, display driver integrated circuits and process technologies that enable higher efficiency, longer lifetimes and improved color performance for a range of display and lighting applications.

Universal Display's core business is licensing its extensive OLED patent portfolio to display manufacturers and providing them with the key organic materials needed for device fabrication.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.