Universal Display Q1 revenue falls 14%, misses estimates

Overview

• OLED materials provider's Q1 revenue declined yr/yr, missing analyst expectations

• Company cut 2026 revenue guidance to $630 mln-$670 mln from $650 mln-$700 mln

• On April 28, board authorized new $400 mln share buyback after completing prior $100 mln program

Outlook

• Universal Display lowers 2026 revenue guidance to $630 mln-$670 mln from $650 mln-$700 mln

• Company expects customer mix in later 2026 to favorably impact royalty and license fees

• Gen 8.6 OLED capacity additions in Korea and China expected to come online this year

Result Drivers

• CUSTOMER MIX AND VOLUME - Co said lower Q1 material sales and royalty/license fees were mainly due to changes in customer mix and lower unit material volume

• MEASURED NEAR-TERM CONDITIONS - Co described near-term market conditions as more measured, impacting results

Company press release: ID:nBw4DDVZNa

Key Details

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 $144.67, about 61.4% above its April 29 closing price of $89.63

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 21 three months ago

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