Universal Display Q3 revenue misses estimates, sees FY sales at lower end of view

Universal Display

28/10/2026 20:31

Overview
OLED technology supplier's Q3 revenue rose yr/yr but missed analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company repurchased 963,333 shares for $78.8 mln in Q3

Outlook
Universal Display expects 2026 revenue to be around the lower end of $630 mln-$670 mln range

Result Drivers
ROYALTY AND LICENSE FEES - Higher Q3 royalty and license fees, aided by increased unit material volume, changes in customer mix, and a $9.5 mln out-of-period adjustment that reduced prior-year revenue
MATERIAL SALES MIX - Q3 material sales declined, mainly due to changes in customer mix and a $4.8 mln unfavorable cumulative catch-up adjustment, partly offset by higher unit material volume
VENTURES INVESTMENT GAIN - Q3 net income benefited from a $28.9 mln gain related to a UDC Ventures investment and a $7.2 mln foreign currency gain on a tax receivable denominated in Korean won

Company press release: ID:nBw19TY2da

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$160.40 mln
$162.72 mln (7 Analysts)
Q3 Adjusted EPS
Beat
$1.23
$1.13 (7 Analysts)
Q3 Net Income
 
$78.90 mln
 
Q3 Gross Margin
 
73.00%
 
Q3 Operating Income
 
$53.70 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and 1 "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 $117.50, about 30% above its October 27 closing price of $90.36
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)