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Universal Display Q4 Earnings Beat on Higher Material Sales
UVVUniversal (UVV) ZACKS·2025-02-21 16:30

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 46millionor46 million or 0.96 per share, down from 62millionor62 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 1.22pershare,surpassingtheZacksConsensusEstimateof1.22 per share, surpassing the Zacks Consensus Estimate of 1.07 [3] - Total revenues for Q4 2024 reached 162.3million,anincreasefrom162.3 million, an increase from 158.3 million in the prior year, exceeding the consensus estimate of 149million[4]−Forthefullyear2024,netincomewas149 million [4] - For the full year 2024, net income was 222.1 million or 4.65pershare,comparedto4.65 per share, compared to 203 million or 4.24persharein2023[3]−Full−yearrevenuesfor2024were4.24 per share in 2023 [3] - Full-year revenues for 2024 were 647.7 million, up from 576.4millionin2023[4]RevenueBreakdown−Materialsalescontributed576.4 million in 2023 [4] Revenue Breakdown - Material sales contributed 93.3 million to revenues in Q4 2024, up from 82.2millionintheprior−yearquarter,exceedingestimates[5]−Revenuesfromgreenemittersalesincreasedto82.2 million in the prior-year quarter, exceeding estimates [5] - Revenues from green emitter sales increased to 67 million from 63million,whileredemittersalesroseto63 million, while red emitter sales rose to 25 million from 18million[5]−Royaltyandlicensefeeswere18 million [5] - Royalty and license fees were 64 million, down from 72.9millioninthepreviousyear,butstillaboveestimates[5]−Contractresearchservicesgenerated72.9 million in the previous year, but still above estimates [5] - Contract research services generated 4.6 million, an increase from 3.2million,butmissedestimates[6]ProfitabilityMetrics−Quarterlygrossprofitroseto3.2 million, but missed estimates [6] Profitability Metrics - Quarterly gross profit rose to 124.9 million from 122.3million,maintainingagrossmarginof77122.3 million, maintaining a gross margin of 77% [7] - Operating income was 52.5 million with a margin of 32%, down from 64.7millionand4164.7 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 154.77millioninthepreviousyear[8]−AsofDecember31,2024,cashandcashequivalentsstoodat154.77 million in the previous year [8] - As of December 31, 2024, cash and cash equivalents stood at 99 million, up from 92millionin2023[8]FutureGuidance−For2025,thecompanyprojectsrevenuesbetween92 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]