Zacks Research Has Bearish Estimate for OLED FY2026 Earnings

Key Points

• Zacks Research cut its FY2026 EPS estimate for Universal Display to $4.16 from $4.83 and kept a Strong Sell rating, signaling a more bearish outlook than the broader consensus of $4.23 per share.
• Universal Display’s latest quarterly results missed expectations, with EPS of $0.76 versus the $1.13 forecast and revenue of $142.21 million below the $161.23 million estimate.
• The stock has also drawn mixed analyst views, with the overall consensus at Hold and an average price target of $130.60, while the shares recently traded around $94.31.

Universal Display Corporation (NASDAQ:OLED - Free Report) - Stock analysts at Zacks Research dropped their FY2026 earnings per share estimates for shares of Universal Display in a research report issued to clients and investors on Thursday, May 21st. Zacks Research analyst Team now anticipates that the semiconductor company will earn $4.16 per share for the year, down from their prior estimate of $4.83. Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for Universal Display's current full-year earnings is $4.23 per share.

Universal Display (NASDAQ:OLED - Get Free Report) last posted its earnings results on Thursday, April 30th. The semiconductor company reported $0.76 EPS for the quarter, missing analysts' consensus estimates of $1.13 by ($0.37). The firm had revenue of $142.21 million for the quarter, compared to the consensus estimate of $161.23 million. Universal Display had a net margin of 34.08% and a return on equity of 12.34%. The firm's revenue was down 14.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.35 earnings per share.

Several other analysts have also weighed in on OLED. Wall Street Zen upgraded Universal Display from a "sell" rating to a "hold" rating in a report on Sunday, February 22nd. Roth Mkm set a $168.00 price target on Universal Display in a research note on Friday, May 1st. The Goldman Sachs Group set a $135.00 target price on Universal Display in a research report on Tuesday, April 21st. Needham & Company LLC decreased their target price on Universal Display from $145.00 to $120.00 and set a "buy" rating for the company in a research report on Friday, May 1st. Finally, Citigroup decreased their price objective on shares of Universal Display from $105.00 to $100.00 and set a "neutral" rating for the company in a report on Monday, May 4th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Universal Display has a consensus rating of "Hold" and a consensus price target of $130.60.

Universal Display Stock Performance

NASDAQ OLED opened at $94.31 on Monday. The stock has a 50 day moving average price of $93.89 and a 200-day moving average price of $109.24. Universal Display has a one year low of $83.64 and a one year high of $163.21. The company has a market capitalization of $4.41 billion, a P/E ratio of 21.05 and a beta of 1.54.

Hedge Funds Weigh In On Universal Display

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Smartleaf Asset Management LLC grew its stake in Universal Display by 309.8% in the third quarter. Smartleaf Asset Management LLC now owns 209 shares of the semiconductor company's stock valued at $30,000 after purchasing an additional 158 shares during the last quarter. Measured Wealth Private Client Group LLC purchased a new stake in shares of Universal Display during the third quarter worth about $33,000. Pilgrim Partners Asia Pte Ltd purchased a new stake in shares of Universal Display during the third quarter worth about $37,000. Jones Financial Companies Lllp grew its stake in shares of Universal Display by 104.2% during the third quarter. Jones Financial Companies Lllp now owns 388 shares of the semiconductor company's stock worth $58,000 after acquiring an additional 198 shares during the last quarter. Finally, RHL Group LLC purchased a new stake in shares of Universal Display during the fourth quarter worth about $60,000. Hedge funds and other institutional investors own 78.19% of the company's stock.

Universal Display Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 16th will be paid a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 2.1%. The ex-dividend date is Tuesday, June 16th. Universal Display's payout ratio is 44.64%.

Universal Display News Roundup

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

• Positive Sentiment: A valuation update highlighted that Universal Display shares trade well below estimated intrinsic value, suggesting potential upside if fundamentals stabilize. A Look at Universal Display Corp (OLED) After 3.5% Gain -- GF Value $152.58 vs Price $90.69
• Neutral Sentiment: Universal Display’s stock has been recovering from recent weakness, but it remains well below its 200-day moving average, indicating the longer-term trend is still soft.
• Negative Sentiment: Zacks Research reduced its Q2 2026 EPS estimate to $1.04 from $1.13, implying near-term earnings pressure.
• Negative Sentiment: The firm also lowered Q3 2026 EPS to $1.11 from $1.22 and Q4 2026 EPS to $1.25 from $1.36, signaling a weaker forward earnings trajectory.
• Negative Sentiment: Longer-dated estimates were also trimmed, including FY2027 EPS to $4.96 from $5.43 and FY2028 EPS to $5.58 from $5.87, while Zacks maintained a Strong Sell rating.

Universal Display Company Profile

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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