Universal Display Stock Inches Up After-Hours Despite Mixed Q4, Disappointing Revenue View: Retail Shrugs It Off Too
Synopsis
Universal Display’s revenue surged in 2024 due to stronger demand for its emitter materials. In contrast, the company’s income from royalty and licensing declined to $64.4 million during the quarter, compared to $72.9 million a year ago.
Shares of Universal Display Corp. (OLED) gained nearly 1.5% in after-market hours on Thursday after the company posted mixed fourth-quarter results.
Universal Display’s Q4 earnings fell below Wall Street expectations – it posted earnings per share (EPS) of $0.96, below the consensus estimate of $1.08. This compares to $1.29 during the same period last year.
The organic light-emitting diode manufacturer posted revenue of $162.3 million in Q4, beating an estimated $152.75 million. Universal Display noted that the surge in revenue was due to stronger demand for its emitter materials.
In contrast, the company’s income from royalty and licensing declined to $64.4 million during the quarter, compared to $72.9 million a year ago. The company said this was due to a change in customer mix and catch-up adjustments.
For fiscal year 2024, Universal Display’s revenue was $647.7 million, rising 12% year over year (YoY) due to strong demand for its emitter materials.
The company’s EPS for 2024 increased to $4.65 from $4.24 in 2023.
In its guidance for fiscal year 2025, Universal Display forecast its revenue to be between $640 million and $700 million, falling slightly short of $715.77 million.
“We believe this new capex cycle will pave the way for meaningful new OLED capacity, new OLED products, and new OLED adoptees,” said Brian Millard, Universal Display’s CFO.
Despite Universal Display’s mixed results, investors on Stocktwits shrugged it off, with retail sentiment soaring to the ‘extremely bullish’ (78/100) territory from ‘bullish’ a day ago.
Message volume surged to ‘extremely high’ levels at the time of writing.
Universal Display’s stock has been on a downward trajectory recently, declining nearly 24% in the past six months. Its one-year performance was slightly better, with a decline of nearly 20%.
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