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

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


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


Reuters Recommended Reads

  • Oct 26 - Cadence tops Q3 profit estimates, hikes forecast on AI-driven design strength

  • Oct 28 - Chip gear maker KLA's Q1 revenue beats analyst estimates on AI demand

  • Oct 28 - Everspin swings to Q3 loss on litigation, regulatory costs


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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