- Universal Display‘s second-quarter revenue reached $171.8 million, surpassing analyst estimates of $161.3 million, marking an 8.4% year-over-year increase.
- Material sales dropped by 7.1% year-over-year to $88.7 million, coming in below the forecast of $91.4 million.
- Royalty and license fees experienced significant growth, climbing 27% year-over-year to $75.7 million, exceeding the expected $65.6 million.
- Contract research services more than doubled compared to the previous year, tallying $7.48 million, and surpassing the estimate of $4.95 million.
- Earnings per share (EPS) rose to $1.41 from $1.10 a year ago, beating expectations which were set at $1.17.
- The company revised its full-year 2025 revenue guidance, increasing the lower end to project a range between $650 million and $700 million.
- Brian Millard, CFO and Treasurer of Universal Display, cited a strong execution and a positive outlook, noting a dynamic phase of expansion in the OLED industry, particularly driven by demand in the OLED IT market (tablets, laptops, monitors).
- The company’s stock is rated with 6 buy recommendations, 3 holds, and no sells.
Universal Display on Smartkarma
Analyst Coverage of Universal Display on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are bullish on Universal Display (OLED) due to the company’s focus on the development and commercialization of Phosphorescent Blue, a critical growth catalyst. In a recent report, Universal Display Corporation announced stable financial results for the first quarter of 2025, with total revenue hitting $166 million. The company’s operating profit rose to $70 million, reflecting a positive trend from the previous year. Despite global challenges and tariff discussions, Universal Display remains optimistic, forecasting full-year revenues between $640 million to $700 million.
Furthermore, Baptista Research has highlighted Universal Display Corporation’s impressive performance in 2024, where the company achieved record revenues of $648 million. The revenue growth was primarily attributed to strong material sales and robust royalty and license revenues. With a net income of $222 million, Universal Display reported earnings per share of $4.65, although impacted by restructuring costs and foreign exchange losses. Analysts are encouraged by Universal Display‘s innovative approaches and financial achievements, reinforcing a bullish sentiment towards the company’s future prospects.
A look at Universal Display Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Universal Display Corporation, as indicated by its Smartkarma Smart Scores, shows a promising long-term outlook. With above-average ratings in Growth, Resilience, and Momentum, the company is positioned well for future growth and sustainability. With a value score right in the middle, it suggests that Universal Display‘s current stock price may adequately reflect its intrinsic value. Overall, the company’s focus on developing high-resolution, full-color, lightweight OLED technology in collaboration with industry partners signifies its commitment to innovation and staying competitive in the display technology market.
The Smartkarma Smart Scores paint a positive picture for Universal Display‘s future prospects. While the dividend score is moderate, the strong ratings in Growth, Resilience, and Momentum indicate that the company is on a solid trajectory for continued success. Being part of the United States Display Consortium and working on cutting-edge OLED technology underscores Universal Display‘s position as a key player in the display industry with a clear focus on advancement and technological leadership.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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