Zacks Research Has Negative Outlook for OLED Q2 Earnings

Key Points

• Zacks Research turned more negative on Universal Display’s near-term outlook, cutting its Q2 2026 EPS estimate to $1.04 from $1.13 and maintaining a Strong Sell rating.
• The firm also lowered its longer-term earnings forecasts, including FY2027 EPS to $4.96 from $5.43 and FY2028 EPS to $5.58 from $5.87, signaling concerns about growth beyond this year.
• Universal Display’s latest reported quarter disappointed, with EPS of $0.76 versus the $1.13 consensus and revenue of $142.21 million below expectations, while analysts overall still rate the stock Hold on average.

Universal Display Corporation (NASDAQ:OLED - Free Report) - Stock analysts at Zacks Research reduced their Q2 2026 EPS estimates for Universal Display in a research note issued to investors on Thursday, May 21st. Zacks Research analyst Team now anticipates that the semiconductor company will post earnings of $1.04 per share for the quarter, down from their prior estimate of $1.13. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for Universal Display's current full-year earnings is $4.40 per share. Zacks Research also issued estimates for Universal Display's Q3 2026 earnings at $1.11 EPS, Q4 2026 earnings at $1.25 EPS, Q1 2027 earnings at $1.13 EPS, Q2 2027 earnings at $1.27 EPS, Q3 2027 earnings at $1.30 EPS, Q4 2027 earnings at $1.26 EPS, FY2027 earnings at $4.96 EPS, Q1 2028 earnings at $1.15 EPS and FY2028 earnings at $5.58 EPS.

Several other research firms have also recently commented on OLED. Citigroup cut their price target on Universal Display from $105.00 to $100.00 and set a "neutral" rating for the company in a report on Monday, May 4th. Needham & Company LLC lowered their price objective on Universal Display from $145.00 to $120.00 and set a "buy" rating on the stock in a research report on Friday, May 1st. Oppenheimer cut their target price on Universal Display from $160.00 to $130.00 and set an "outperform" rating for the company 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. Finally, Weiss Ratings reiterated a "hold (c-)" rating on shares of Universal Display in a research note on Monday, March 23rd. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $130.60.

Universal Display Stock Performance

NASDAQ OLED opened at $91.57 on Friday. Universal Display has a twelve month low of $83.64 and a twelve month high of $163.21. The stock has a market cap of $4.28 billion, a PE ratio of 20.44 and a beta of 1.54. The firm has a 50-day simple moving average of $93.97 and a 200 day simple moving average of $109.60.

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

Institutional Trading of Universal Display

Several large investors have recently made changes to their positions in the business. Smartleaf Asset Management LLC increased its position in Universal Display by 309.8% in the 3rd quarter. Smartleaf Asset Management LLC now owns 209 shares of the semiconductor company's stock valued at $30,000 after acquiring an additional 158 shares in the last quarter. Measured Wealth Private Client Group LLC acquired a new position in shares of Universal Display during the third quarter worth approximately $33,000. Pilgrim Partners Asia Pte Ltd bought a new stake in shares of Universal Display during the third quarter valued at approximately $37,000. Jones Financial Companies Lllp increased its holdings in shares of Universal Display by 104.2% in the third quarter. Jones Financial Companies Lllp now owns 388 shares of the semiconductor company's stock valued at $58,000 after purchasing an additional 198 shares in the last quarter. Finally, RHL Group LLC acquired a new stake in shares of Universal Display in the fourth quarter valued at approximately $60,000. Institutional investors own 78.19% of the company's stock.

Universal Display Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Tuesday, June 16th. Universal Display's payout ratio is presently 44.64%.

More Universal Display News

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

• Negative Sentiment: Zacks Research cut its FY2027 EPS estimate for Universal Display to $4.96 from $5.43, pointing to a weaker medium-term earnings outlook. Universal Display Corporation stock page
• Negative Sentiment: The firm also lowered its FY2028 EPS estimate to $5.58 from $5.87, along with cuts to Q2 2026, Q3 2026, Q4 2026, Q1 2027, Q2 2027, Q3 2027, and Q4 2027 estimates, reinforcing concerns about near- and long-term growth. Universal Display Corporation stock page
• Neutral Sentiment: Universal Display’s recent share price has been trading well below its 200-day moving average, and the stock had recently risen 3.5% in a prior session, showing the name can still attract buying interest despite the cautious analyst backdrop.

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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