Universal Display slightly beats Q4 revenue estimates

Overview

• OLED technology firm's Q4 revenue slightly beat analyst expectations, rising 6.5% yr/yr

• Net income for Q4 increased significantly compared to last year

• Company repurchased 291,210 shares for $34.1 mln during Q4

Outlook

• Universal Display projects 2026 revenue between $650 mln and $700 mln

• Company notes dynamic environment and industry shifts in OLED market

• Universal Display emphasizes long-term potential in OLED technology

Result Drivers

• MATERIAL SALES - Increase in Q4 material sales revenue attributed to higher unit material volume and changes in customer mix

• ROYALTY AND LICENSE FEES - Q4 revenue from royalty and license fees increased due to higher unit material volume and changes in customer mix

• OPERATING INCOME - Significant improvement in Q4 operating income due to absence of prior year's restructuring costs

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for Universal Display Corp is $167.50, about 39.7% above its February 18 closing price of $119.92

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nBw56HTJza

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