Core Insights - Universal Display Corp. reported revenue of $161.63 million for Q3 2024, a year-over-year increase of 14.6% and an EPS of $1.40 compared to $1.08 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $167.45 million, resulting in a surprise of -3.48%, while the EPS exceeded expectations by 16.67% against a consensus estimate of $1.20 [1] Revenue Breakdown - Material sales revenue was $83.43 million, below the average estimate of $95.97 million, reflecting a year-over-year decline of 9.8% [3] - Contract research services generated $3.61 million, compared to the average estimate of $4.08 million, marking a year-over-year increase of 35.2% [3] - Royalty and license fees amounted to $74.59 million, surpassing the average estimate of $66.64 million, with a year-over-year growth of 62.5% [3] Stock Performance - Universal Display shares have returned +5.1% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [4] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [4]

Universal Display Corp. (OLED) came out with quarterly earnings of $1.40 per share, beating the Zacks Consensus Estimate of $1.20 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.67%. A quarter ago, it was expected that this organic light-emitting diode technology company would post earnings of $1.14 per share when it actually produced earnings of $1.10, delivering a surprise of ...

Universal Display Corporation (NASDAQ:OLED) Q3 2024 Earnings Conference Call October 30, 2024 5:00 PM ET Company Participants Darice Liu - Director, Investor Relations Steve Abramson - President & Chief Executive Officer Brian Millard - Vice President & Chief Financial Officer Conference Call Participants Martin Yang - Oppenheimer & Company Scott Searle - ROTH Capital Partners Nam Kim - Arete Research Operator Good day, ladies and gentlemen, and welcome to Universal Display Corporation's Third Quarter Earni ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ___________ Commission File Number 1-12031 UNIVERSAL DISPLAY CORPORATION (Exact name of registrant as specified in its charter) Pennsylvan ...

Revenue Performance - Total revenue for Q3 2024 was $161.6 million, up from $141.1 million in Q3 2023, representing a year-over-year increase of 14.0%[3] - Revenue from material sales decreased to $83.4 million in Q3 2024 from $92.5 million in Q3 2023, a decline of 9.5%[3] - Revenue from royalty and license fees increased to $74.6 million in Q3 2024, compared to $45.9 million in Q3 2023, marking a significant increase of 62.8%[3] - For the first nine months of 2024, total revenue was $485.4 million, up from $418.1 million in the same period of 2023, a growth of 16.1%[6] - Total revenue for Q3 2024 was $161.6 million, a 14.6% increase from $141.1 million in Q3 2023[17] Income and Profitability - Operating income for Q3 2024 was $67.0 million, up from $48.4 million in Q3 2023, reflecting a growth of 38.4%[3] - Net income for Q3 2024 was $66.9 million, or $1.40 per diluted share, compared to $51.5 million, or $1.08 per diluted share in Q3 2023, an increase of 29.8% in net income[3] - Gross margin for Q3 2024 was $125.8 million, compared to $106.8 million in Q3 2023, reflecting a 17.8% increase[17] - Net income for the nine months ended September 30, 2024, was $176,060,000, an increase from $141,033,000 in the same period of 2023, representing a growth of approximately 25%[18] Cash Flow and Dividends - Cash and cash equivalents decreased to $79.6 million as of September 30, 2024, down from $92.0 million at the end of 2023[16] - Cash dividends declared per common share increased to $0.40 in Q3 2024, compared to $0.35 in Q3 2023[17] - Cash dividends paid amounted to $57,837,000, compared to $50,083,000 in the previous year, indicating an increase of approximately 15.5%[18] - The company announced a fourth quarter cash dividend of $0.40 per share, payable on December 31, 2024[10] Tax and Guidance - The effective income tax rate increased to 17.9% in Q3 2024 from 4.4% in Q3 2023, primarily due to changes in IRS regulations[3] - The company revised its 2024 revenue guidance to a range of $625 million to $645 million, reflecting a more modest growth expectation[9] Assets and Equity - Total assets increased to $1.81 billion as of September 30, 2024, compared to $1.67 billion at the end of 2023, a growth of 8.5%[16] - Shareholders' equity rose to $1.59 billion as of September 30, 2024, up from $1.45 billion at the end of 2023, an increase of 9.7%[16] Operational Changes - Universal Display is positioned to benefit from a new OLED adoption cycle in medium-sized displays, particularly in IT and automotive sectors[2] Cash Flow Activities - Net cash provided by operating activities increased to $219,027,000 from $117,707,000, reflecting a significant rise of about 86%[18] - Net cash used in investing activities was $167,141,000, a notable increase from $75,368,000, highlighting a rise of about 121%[18] - Proceeds from the sale and maturity of investments totaled $200,768,000, down from $346,407,000, showing a decrease of approximately 42%[18] - The company reported a decrease in cash and cash equivalents of $12,426,000, compared to a decrease of $14,107,000 in the prior year[18] Other Financial Metrics - Stock-based compensation increased to $23,812,000 from $18,623,000, representing a growth of approximately 27.5%[18] - Accounts receivable saw a significant increase of $52,157,000, compared to a decrease of $29,528,000 in the previous year[18] - The company reported a net change in accounts payable and accrued expenses related to purchases of property and equipment of $(5,573,000), compared to $887,000 in the prior year[18] - Unrealized gain on available-for-sale securities was $4,117,000, up from $3,304,000, reflecting an increase of about 24.5%[18]

Universal Display Corporation (OLED) reported relatively modest second-quarter 2024 results, with both the top and bottom lines falling short of the Zacks Consensus Estimate. However, the company reported a top-line expansion year over year, backed by solid demand for emitter materials. The company is witnessing strong OLED proliferation from leading manufacturers. The introduction of new OLED PC products and healthy traction in the IT landscape acted as a tailwind. Management is undertaking several measure ...

Core Insights - Universal Display Corp. reported revenue of $158.51 million for the quarter ended June 2024, reflecting an 8.1% increase year-over-year, but fell short of the Zacks Consensus Estimate by 1.01% [1] - The company's EPS was $1.10, up from $1.04 in the same quarter last year, but also missed the consensus estimate of $1.14 by 3.51% [1] Revenue Breakdown - Material sales revenue was $95.44 million, exceeding the average estimate of $91.55 million by analysts, with a year-over-year increase of 23.8% [3] - Contract research services generated $3.51 million, slightly above the average estimate of $3.28 million, but showed a significant year-over-year decline of 30.6% [4] - Royalty and license fees amounted to $59.55 million, below the average estimate of $65.30 million, representing a year-over-year decrease of 7.5% [5] Stock Performance - Over the past month, Universal Display shares have returned 2.1%, outperforming the Zacks S&P 500 composite's return of 1.1% [5] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [5]

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $159 million, an increase of 8% year-over-year from $147 million in Q2 2023 [12] - Operating profit was $56 million, with a net income of $52 million or $1.10 per diluted share, compared to $50 million or $1.04 per diluted share in the same period last year [4][14] - The company raised the low end of its annual revenue guidance for 2024 to a range of $645 million to $675 million [4][14] Business Line Data and Key Metrics Changes - Total material sales in Q2 2024 were $95 million, up from $77 million in Q2 2023 [12] - Green emitter sales were $71.6 million, compared to $57.9 million in the prior year, while red emitter sales increased to $22.5 million from $16.7 million [12] - Royalty and license fees for Q2 2024 were $60 million, down from $64 million in the previous year [12] Market Data and Key Metrics Changes - OLED tablet panel shipments are expected to triple year-over-year to 14.8 million units, while OLED notebook panel shipments are forecasted to almost double to 8 million units in 2024 [5] - OLED smartphone shipments surpassed LCD shipments for the first time, capturing 51% of the market in Q1 2024, with OLED smartphone display shipments increasing to 182 million units, up 39% year-over-year [7][8] - OLED TV panel shipments are projected to reach 7.1 million units in 2024, a 33% increase year-over-year [8] Company Strategy and Development Direction - The company is committed to being a leader in the OLED ecosystem, focusing on innovation and collaboration to achieve long-term growth [16] - A new multiyear OLED CapEx cycle is anticipated to support growth, with significant investments announced by major players like Samsung and Visionox [6] - The company is exploring new ideas and developing solutions to meet evolving customer needs, including advancements in phosphorescent materials [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of OLEDs, driven by broadening adoption across consumer markets [4] - The company acknowledged the need for more time to refine its phosphorescent blue emissive materials, with expectations for commercialization extending beyond 2024 [10][11] - Management remains optimistic about the future of OLED technology and its applications across various sectors [16] Other Important Information - The company ended the quarter with approximately $879 million in cash, cash equivalents, and investments [14] - A quarterly dividend of $0.40 was approved, reflecting the company's commitment to return capital to shareholders [14] Q&A Session Summary Question: Update on blue phosphorescent development - Management acknowledged the need for more time to achieve commercial entry specifications for blue phosphorescent materials, with $1.3 million in sales for Q2 [18][19] Question: Competitive dynamics in China - Management stated that there are no competitive materials from China that rival their state-of-the-art offerings, emphasizing strong customer relationships and long-term agreements [20][21] Question: Drivers of updated guidance - The updated guidance was attributed to greater visibility into the year’s performance, with expectations across all business lines contributing to the adjustment [23][24] Question: Differences in performance between Korean and Chinese customers - Management noted variable ordering patterns from Chinese customers, which have been inconsistent compared to the strong growth from Korean customers [33] Question: Deferred revenue increase - The increase in deferred revenue was due to achieving certain billing milestones on contracts during the quarter [39]

Universal Display Corp. (OLED) came out with quarterly earnings of $1.10 per share, missing the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $1.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -3.51%. A quarter ago, it was expected that this organic light-emitting diode technology company would post earnings of $1.05 per share when it actually produced earnings of $1.19, delivering a surprise of ...

Revenue Performance - Total revenue for the three months ended June 30, 2024, was $158.5 million, an increase of 8.1% from $146.6 million in the same period of 2023[146]. - Total revenue for the six months ended June 30, 2024, was $323.8 million, an increase of 17% from $277.0 million for the same period in 2023[158]. - Material sales increased by 24% to $95.4 million for the three months ended June 30, 2024, compared to $77.1 million in the same period of 2023, with unit material volume increasing by 23%[147]. - Material sales reached $188.7 million for the six months ended June 30, 2024, up 28% from $147.3 million in the prior year, with a 30% increase in unit material volume[159]. - Revenue from royalty and license fees decreased by 8% to $59.6 million for the three months ended June 30, 2024, down from $64.4 million in the same period of 2023[148]. - Royalty and license fees increased by 7% to $127.8 million for the six months ended June 30, 2024, compared to $119.6 million for the same period in 2023[160]. Expenses and Income - Research and development expenses increased to $36.8 million for the three months ended June 30, 2024, compared to $32.3 million in the same period of 2023, primarily due to higher operating costs[151]. - Research and development expenses rose to $74.8 million for the six months ended June 30, 2024, from $63.7 million in the same period in 2023, marking a 17% increase[163]. - Selling, general and administrative expenses increased to $39.1 million for the six months ended June 30, 2024, compared to $32.5 million for the same period in 2023, reflecting a rise of 20%[164]. - Operating income for the three months ended June 30, 2024, was $56.4 million, a decrease from $58.6 million in the same period of 2023[146]. - Net income for the three months ended June 30, 2024, was $52.3 million, compared to $49.7 million in the same period of 2023, reflecting an increase of 5.4%[146]. Margins and Financial Ratios - Gross margin for the three months ended June 30, 2024, was $120.2 million, with a gross margin percentage of 76%, down from 78% in the same period of 2023[150]. - Gross margin for the six months ended June 30, 2024, increased to 77% from 76% in the prior year, driven by higher revenue from material sales and royalty and license fees[162]. - The effective income tax rate decreased to 19.3% for the six months ended June 30, 2024, from 22.6% in the same period in 2023, with income tax expense recorded at $26.2 million for both periods[169]. Cash Flow and Liquidity - Cash provided by operating activities for the six months ended June 30, 2024, was $139.2 million, significantly higher than $57.4 million for the same period in 2023[171]. - As of June 30, 2024, the company had total liquidity of $879.0 million, up from $799.6 million as of December 31, 2023[170]. - Interest income, net was $19.5 million for the six months ended June 30, 2024, compared to $13.2 million for the same period in 2023, reflecting a 48% increase[168]. Manufacturing and Operational Insights - The new manufacturing site in Shannon, Ireland, is expected to double production capacity and diversify the manufacturing base for phosphorescent emitters[145]. - The company anticipates fluctuations in annual and quarterly results due to various factors, including sales timing and customer demand[145]. Risk Management - The company prepares its Consolidated Financial Statements in accordance with U.S. generally accepted accounting principles, which involve critical accounting policies related to revenue recognition, deferred revenue, inventories, and income taxes[177]. - As of June 30, 2024, the company had no off-balance sheet arrangements that could expose it to credit, liquidity, or market risk[180]. - The company does not utilize financial instruments for trading purposes and holds no derivative financial instruments that could expose it to significant market risk, primarily facing interest rate changes[181]. - Substantially all of the company's revenue is derived from outside of North America, primarily denominated in U.S. dollars, mitigating significant foreign exchange risk[182].