Company Overview - UDC celebrated its 30th anniversary in 2024, growing into a global leader in the OLED ecosystem[8] - The company's revenue in CY 2024 was $648 million[22] - UDC holds over 6,500 issued and pending patents worldwide as of April 24, 2025[17, 41] Environmental Impact - UDC's technology in OLED smartphones saves an estimated 1,343 GW-h per year, equivalent to 902,295 metric tons of CO2 equivalent avoided annually[144] - In 2024, UDC offset 74% of its Company Scope 2 emissions through electricity offsets at its Ewing, NJ HQ and Adesis, Inc facilities[149] - UDC achieved a ~500,000 gallons reduction in water usage due to strengthened preventative maintenance program[166] - 74% of total hazardous waste was recovered/recycled in 2024[170] - 78% of the Company's total billed electricity was offset from Renewable Energy Credits (RECs) in 2024[173] Workforce and Community - UDC has a global team of 465 full-time employees from over 25 countries[27, 52] - Female employees make up 22% of the global workforce[19, 57] - UDC awarded a $20,000 scholarship to a college-bound student pursuing a STEM degree at Ewing High School in 2024[92] - UDC donated $25,000 to Paul Robeson Charter School's "Building Bright Futures Campaign" in 2024[93] - 100% of eligible employees received bonuses in 2024, consisting of cash and equity[66]

Financial Data and Key Metrics Changes - The meeting did not provide specific financial data or key metrics changes for FY 2025 [3][4][12] Business Line Data and Key Metrics Changes - No detailed information on individual business line performance or key metrics was shared during the meeting [3][4][12] Market Data and Key Metrics Changes - There was no discussion regarding market data or key metrics changes in the meeting [3][4][12] Company Strategy and Development Direction and Industry Competition - The meeting focused on formal business matters without a presentation on company strategy or industry competition [3][4][12] Management's Comments on Operating Environment and Future Outlook - Management did not provide comments on the operating environment or future outlook during the meeting [3][4][12] Other Important Information - The meeting included the election of 11 director nominees and an advisory vote on executive compensation, both of which were approved [6][8][11] - KPMG LLP was ratified as the independent auditor for the year ending December 31, 2025 [8][11] Q&A Session Summary - There were no questions submitted during the Q&A session, and thus no responses were provided [9][11]

Core Viewpoint - Zacks Premium provides tools and resources to help investors make informed decisions and maximize their stock market investments Group 1: Zacks Style Scores - Zacks Style Scores rates stocks based on value, growth, and momentum characteristics, aiding investors in selecting securities with high potential to outperform the market in the short term [2][3] - Each stock receives a rating from A to F, with A indicating the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, which combines all three styles for a comprehensive evaluation [3][4][5][6] Group 2: Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns [9] Group 3: Universal Display Corporation (OLED) - Universal Display Corporation is a leading developer in the Organic Light Emitting Diodes (OLED) market, currently rated 3 (Hold) with a VGM Score of B [11] - The company has a Momentum Style Score of A, with shares increasing by 0.8% over the past four weeks [11] - For fiscal 2025, the Zacks Consensus Estimate for OLED's earnings per share has risen by $0.32 to $5.05, with an average earnings surprise of 13.3% [12]

Summary of Universal Display Corporation (UDC) Conference Call Company Overview - **Company**: Universal Display Corporation (UDC) - **Industry**: OLED (Organic Light Emitting Diode) technology and materials - **Key Focus**: Development and supply of OLED materials and technologies for display manufacturers Key Points and Arguments Industry Trends and Growth Catalysts - The long-term growth catalyst for UDC is the increasing demand for energy-efficient displays driven by advancements in consumer electronics, including AI and 5G technologies [8][9] - UDC has a 51% penetration rate in the smartphone market as of the end of 2024, with lower penetration in IT (4%) and TVs (4%) [11][12] - A new multi-year capital expenditure cycle is emerging in the medium-sized market for IT and automotive displays, with significant investments from panel makers [14][15] Capacity and Production - New OLED production facilities are set to come online, including Samsung's Gen 8.6 facility in Q2 2026 and BOE's facility in Q4 2026, with total investments around $20 billion [13][14] - UDC has long-term agreements with major customers like Samsung and LG Display, which include both materials and licensing agreements [17][19] Revenue Streams - UDC's revenue is primarily generated from material sales and licensing agreements, with a projected material to royalty licensing ratio of 1.4 to 1 for the current year [19] - The introduction of blue phosphorescent materials is expected to significantly enhance revenue opportunities, with LG Display showcasing a 15% increase in energy efficiency for their blue panels [21][22] Competitive Landscape - UDC believes it holds a competitive edge in high-efficiency blue materials, asserting that "all roads to high efficiency blue go through us" [26][27] - The company does not foresee significant competition in the blue material space, emphasizing its proprietary technology and established relationships [26][27] Supply Chain and Tariff Management - UDC operates a fabless model, relying on PPG for manufacturing, with production sites in the US and Ireland [37][38] - The company has a diversified global supply chain, mitigating risks associated with tariffs and geopolitical tensions [42][43] Financial Performance - UDC expects gross margins of 76% to 77% and operating margins of 35% to 40% for the year, attributed to its strong licensing business and innovative materials [63][64] - The company has a history of returning cash to shareholders through dividends and a $100 million stock buyback program [68][69] Future Outlook - UDC anticipates continued growth in OLED adoption across various sectors, including automotive and IT, with a focus on next-generation materials and technologies [52][58] - The company is exploring both organic and inorganic growth opportunities through its venture arm, UDC Ventures [72][73] Additional Important Insights - The automotive industry presents a significant opportunity for OLED displays, with multiple displays per vehicle and a growing interest from EV manufacturers [56][58] - UDC's strong relationships with customers and continuous innovation are key to maintaining its leadership position in the OLED market [67]

Core Viewpoint - Universal Display (NASDAQ: OLED) has been monitored for a considerable time, but its shares have consistently appeared overpriced, and the technology is not yet ready for mass adoption [1] Company Summary - Universal Display is involved in the development of display technologies, particularly organic light-emitting diodes (OLED) [1] - The company has a long position in its shares, indicating confidence in its future performance [1] Industry Summary - The OLED technology market is still in a phase where mass adoption has not been achieved, suggesting potential growth opportunities as technology matures [1]

Core Insights - Universal Display Corp. (OLED) has a significant reliance on international markets for its revenue, which is essential for assessing its financial resilience and growth prospects [2][3]. International Revenue Performance - The total revenue for the quarter ended March 2025 was $166.28 million, reflecting a 0.6% increase [4]. - South Korea generated $87.33 million, accounting for 52.52% of total revenue, which was an 8.06% miss compared to the consensus estimate of $94.99 million [5]. - China contributed $71.09 million, representing 42.75% of total revenue, exceeding expectations by 32.73% as analysts had forecasted $53.56 million [6]. - Japan's revenue was $0.41 million, making up 0.25% of total revenue, which was a 44.93% miss against the projected $0.75 million [7]. Future Revenue Projections - For the current fiscal quarter, total revenue is anticipated to be $163.95 million, a 3.4% increase year-over-year, with expected contributions of 57% from South Korea ($93.43 million), 35.6% from China ($58.31 million), and 0.4% from Japan ($0.61 million) [8]. - The full-year revenue forecast is $672.51 million, representing a 3.8% improvement from the previous year, with South Korea expected to contribute 62.2% ($418.06 million), China 38.3% ($257.82 million), and Japan 0.5% ($3.6 million) [9]. Market Trends and Stock Performance - The company's international revenue dynamics present both opportunities and challenges, necessitating close monitoring to project future performance [10]. - Over the past four weeks, Universal Display's stock has increased by 33.4%, outperforming the Zacks S&P 500 composite, which rose by 9.1% [13]. - In the last three months, the stock has appreciated by 8.7%, while the S&P 500 declined by 3.1%, indicating a strong performance relative to the broader market [13].

Financial Performance - Universal Display Corporation (OLED) reported net income of $64.4 million or $1.35 per share in Q1 2025, an increase from $56.9 million or $1.19 in the same quarter last year, with a bottom line that beat the Zacks Consensus Estimate by $0.28 [3] - Revenues for the company reached $166.3 million, slightly up from $165.3 million year-over-year, surpassing the consensus estimate of $155 million [3] - Material sales contributed $86.2 million to revenues, down from $93.3 million in the prior-year quarter, while revenues from green emitter sales declined to $64 million from $71 million [4] - Revenues from royalties and license fees increased to $73.6 million from $68.3 million year-over-year, exceeding the estimate of $58.7 million [5] - Quarterly gross profit was $128.1 million, with a gross margin of 77%, down from 78% a year ago [6] Operational Insights - The company is focusing on improving operational and strategic infrastructure to maintain its leadership position in the OLED industry [2] - Cash generated from operating activities in Q1 was $30.6 million, a decrease from $72.2 million in the previous year [7] - As of March 31, 2025, OLED had $157.5 million in cash and cash equivalents [7] Future Outlook - For 2025, OLED expects revenues to be in the range of $640 million to $700 million, with a predicted gross margin of 76-77% [8] - Management remains optimistic about long-term growth potential despite near-term uncertainties, citing increasing OLED usage in various consumer electronics and IT applications as a key growth driver [9]

Core Insights - Universal Display Corp. reported revenue of $166.28 million for the quarter ended March 2025, reflecting a year-over-year increase of 0.6% and exceeding the Zacks Consensus Estimate of $154.85 million by 7.38% [1] - The company's EPS for the quarter was $1.35, up from $1.19 in the same quarter last year, representing a surprise of 26.17% compared to the consensus estimate of $1.07 [1] Revenue Breakdown - Material sales generated $86.16 million, which was below the three-analyst average estimate of $90.21 million, marking a year-over-year decline of 7.6% [4] - Contract research services revenue was reported at $6.55 million, significantly exceeding the average estimate of $3.61 million, and showing a substantial year-over-year increase of 76.8% [4] - Royalty and license fees amounted to $73.57 million, surpassing the average estimate of $61.45 million, with a year-over-year growth of 7.8% [4] Stock Performance - Over the past month, Universal Display's shares have declined by 9.6%, contrasting with a 0.7% decrease in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1: Earnings Performance - Universal Display Corp. reported quarterly earnings of $1.35 per share, exceeding the Zacks Consensus Estimate of $1.07 per share, and up from $1.19 per share a year ago [1] - The earnings surprise for this quarter was 26.17%, following a previous surprise of 14.02% when earnings were $1.22 per share against an expectation of $1.07 [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] Group 2: Revenue Performance - The company posted revenues of $166.28 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.38%, and slightly up from $165.26 million year-over-year [3] - Universal Display has topped consensus revenue estimates two times over the last four quarters [3] Group 3: Stock Performance and Outlook - Universal Display shares have declined approximately 14.1% since the beginning of the year, compared to a decline of 5.3% for the S&P 500 [4] - The company's current consensus EPS estimate for the upcoming quarter is $1.07 on revenues of $158.08 million, and for the current fiscal year, it is $4.69 on revenues of $667.29 million [8] Group 4: Industry Context - Universal Display operates within the Zacks Electronics - Miscellaneous Components industry, which is currently ranked in the bottom 42% of over 250 Zacks industries [9] - Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [9]

Universal Display (OLED) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Company Participants Darice Liu - Senior Director of Investor Relations & Corporate CommunicationsSteven Abramson - President, Chief Executive Officer & DirectorBrian Millard - VP, CFO & TreasurerTyler Bisset - Equity Research Associate Conference Call Participants James Ricchiuti - Senior AnalystMehdi Hosseini - Senior Equity Research AnalystScott Searle - Managing Director, Senior Research AnalystNam Hyung Kim - Senior AnalystNone - A ...