Universal Display Q4 Earnings Beat on Higher Material Sales

Core Insights - Universal Display Corporation (OLED) reported strong fourth-quarter 2024 results, with adjusted earnings and revenues exceeding Zacks Consensus Estimates, driven by robust material sales growth [1][4] - The company anticipates continued growth in the consumer electronics market, with strategic measures in place to enhance its operational and strategic infrastructure [2][10] Financial Performance - Net income for Q4 2024 was $46 million or $0.96 per share, down from $62 million or $1.29 per share in the previous year, impacted by higher operating expenses and restructuring charges [3] - Adjusted earnings for Q4 2024 were $1.22 per share, surpassing the Zacks Consensus Estimate of $1.07 [3] - Total revenues for Q4 2024 reached $162.3 million, an increase from $158.3 million in the prior year, exceeding the consensus estimate of $149 million [4] - For the full year 2024, net income was $222.1 million or $4.65 per share, compared to $203 million or $4.24 per share in 2023 [3] - Full-year revenues for 2024 were $647.7 million, up from $576.4 million in 2023 [4] Revenue Breakdown - Material sales contributed $93.3 million to revenues in Q4 2024, up from $82.2 million in the prior-year quarter, exceeding estimates [5] - Revenues from green emitter sales increased to $67 million from $63 million, while red emitter sales rose to $25 million from $18 million [5] - Royalty and license fees were $64 million, down from $72.9 million in the previous year, but still above estimates [5] - Contract research services generated $4.6 million, an increase from $3.2 million, but missed estimates [6] Profitability Metrics - Quarterly gross profit rose to $124.9 million from $122.3 million, maintaining a gross margin of 77% [7] - Operating income was $52.5 million with a margin of 32%, down from $64.7 million and 41% in the prior year [7] Cash Flow and Liquidity - In 2024, cash generated from operating activities was $253.7 million, compared to $154.77 million in the previous year [8] - As of December 31, 2024, cash and cash equivalents stood at $99 million, up from $92 million in 2023 [8] Future Guidance - For 2025, the company projects revenues between $640 million and $700 million, with a gross margin forecast of 76-77% and an operating margin of 35-40% [9]