Universal Display Earnings: Here’s Why Investors are Selling Shares Now

Universal Display Corp. (NASDAQ:PANL) had a loss and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.5%.

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Universal Display Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.10 in the quarter versus EPS of $-0.03 in the year-earlier quarter.

Revenue: Rose 18.7% to $14.98 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Universal Display Corp. reported adjusted EPS loss of $0.10 per share. By that measure, the company met the mean analyst estimate of $-0.10. It beat the average revenue estimate of $14.38 million.

Quoting Management: “Commercial material revenues were up 40% in the first quarter as we began shipping production quantities of both green emitter and host materials,” said Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display. “With two different color materials shipping at production volumes, we now have more than twice as much content in commercial products than at any previous point in the company’s history. As we build our organization to capitalize on this emerging market, we believe we can achieve attractive gross margins and leverage our fixed infrastructure to create excellent returns for shareholders.”

Key Stats (on next page)…

Revenue decreased 46.75% from $28.13 million in the previous quarter. EPS decreased to $-0.10 in the quarter versus EPS of $0.12 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.34 to a profit $0.29. For the current year, the average estimate has moved down from a profit of $0.74 to a profit of $0.60 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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