Zacks Research Cuts Earnings Estimates for Universal Display

Key Points

• Zacks Research lowered Universal Display’s FY2026 EPS estimate to $4.13 from $4.15, below the $4.18 consensus, while maintaining a “Hold” rating.
• Universal Display’s latest quarter beat earnings expectations at $1.06 per share versus $1.03, but revenue of $152.16 million missed estimates and fell 11.4% year over year.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and average price target of $116.33; shares recently traded at $86.50. The company also declared a quarterly dividend of $0.50, implying a 2.3% annual yield.

Universal Display Corporation (NASDAQ:OLED - Free Report) - Investment analysts at Zacks Research cut their FY2026 earnings per share estimates for Universal Display in a research report issued on Thursday, August 20th. Zacks Research analyst Team now expects that the semiconductor company will post earnings of $4.13 per share for the year, down from their previous estimate of $4.15. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Universal Display's current full-year earnings is $4.18 per share. Zacks Research also issued estimates for Universal Display's Q4 2026 earnings at $1.19 EPS, Q1 2027 earnings at $0.96 EPS, Q2 2027 earnings at $1.12 EPS, Q4 2027 earnings at $1.36 EPS, FY2027 earnings at $4.81 EPS and Q1 2028 earnings at $1.14 EPS.

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

Other research analysts also recently issued reports about the stock. Needham & Company LLC lowered their price target on shares of 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 downgraded Universal Display to a "neutral" rating in a report on Friday, July 31st. Oppenheimer restated an "outperform" rating and set a $120.00 price objective (down from $130.00) on shares of Universal Display in a research report on Friday, July 31st. Roth Capital set a $168.00 target price on Universal Display in a report on Friday, May 1st. Finally, Susquehanna dropped their target price on Universal Display from $110.00 to $90.00 and set a "neutral" rating for the company in a research report on Friday, July 31st. Three equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Universal Display presently has a consensus rating of "Hold" and an average target price of $116.33.

Universal Display Price Performance

Shares of NASDAQ:OLED opened at $86.50 on Friday. The company has a market cap of $3.98 billion, a price-to-earnings ratio of 20.94 and a beta of 1.54. The firm has a 50 day simple moving average of $84.51 and a 200 day simple moving average of $93.95. Universal Display has a one year low of $76.42 and a one year high of $153.38.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. XXEC Inc. bought a new position in shares of Universal Display during the second quarter worth about $2,508,286,000. BlackRock Inc. bought a new stake in Universal Display in the second quarter valued at approximately $373,931,000. Primecap Management Co. CA acquired a new stake in Universal Display during the 2nd quarter valued at approximately $190,136,000. Norges Bank acquired a new stake in Universal Display during the 4th quarter valued at approximately $92,756,000. Finally, JPMorgan Chase & Co. raised its holdings in Universal Display by 86.4% during the 4th quarter. JPMorgan Chase & Co. now owns 880,678 shares of the semiconductor company's stock worth $102,846,000 after purchasing an additional 408,315 shares during the last quarter. 78.19% of the stock is owned by institutional investors.

Universal Display Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th will be issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Wednesday, September 16th. Universal Display's dividend payout ratio is presently 48.43%.

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.

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