Why Universal Display Stock Popped Today

What happened

Shares of Universal Display (NASDAQ: OLED) skyrocketed as much as 21.3% early Friday, then settled to trade up 8.6% as of 2:00 p.m. EDT after the OLED technology leader announced strong first-quarter 2019 results and raised its full-year outlook.

More specifically, Universal Display's quarterly revenue climbed 101.4% year over year to $87.8 million, translating to GAAP net income of $31.5 million, or $0.66 per share. Though we don't usually pay close attention to Wall Street's expectations, most analysts were modeling earnings closer to $0.29 per share on revenue of $64.3 million.

Universal Display jars with samples of OLED material in front of them.


So what

Universal Display's OLED material sales more than doubled on a year-over-year basis to $54.5 million, while royalty and license revenue climbed over 90% to $30.3 million. Contract research services revenue also jumped $24.4 million to $3 million, stemming from Universal Display's acquisition of CRO Adesis in 2016.

"We are pleased to report solid first-quarter 2019 results," stated CFO Sid Rosenblatt. "As seen by leading OEM product launches, OLEDs are the display technology of choice for premium smartphones and TVs."

Now what

Looking ahead to full-year 2019, Universal Display now expects revenue ranging from $345 million to $365 million, up from its previous guidance for $325 million to $350 million and representing 43.5% growth from 2018 at the midpoint.

In the end, this was a straightforward beat-and-raise scenario that the market is rightly applauding. And Universal Display stock is responding accordingly.

10 stocks we like better than Universal Display
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Universal Display wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of March 1, 2019


Steve Symington owns shares of Universal Display. The Motley Fool owns shares of and recommends Universal Display. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More