Universal Display (OLED, Financial) has been added to Goldman Sachs' prestigious US Conviction List. The investment bank has issued a Buy rating for the company's shares and set a price target of $183. Analysts highlight the company's plan to introduce a novel material, specifically a new blue component, which is expected to enhance display efficiency by reducing energy consumption. This development could significantly benefit battery-operated devices such as smartphones and tablets, potentially prolonging their battery life. The innovative material positions Universal Display as a key player in advancing display technology.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Universal Display Corp (OLED, Financial) is $176.17 with a high estimate of $213.00 and a low estimate of $130.00. The average target implies an upside of 22.75% from the current price of $143.52. More detailed estimate data can be found on the Universal Display Corp (OLED) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Universal Display Corp's (OLED, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Universal Display Corp (OLED, Financial) in one year is $170.62, suggesting a upside of 18.88% from the current price of $143.52. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Universal Display Corp (OLED) Summary page.
OLED Key Business Developments
Release Date: May 01, 2025
- Revenue: $166 million in Q1 2025, compared to $165 million in Q1 2024.
- Operating Profit: $70 million in Q1 2025.
- Net Income: $64 million, or $1.35 per diluted share in Q1 2025, up from $57 million, or $1.19 per diluted share in Q1 2024.
- Material Sales: $86 million in Q1 2025, down from $93 million in Q1 2024.
- Green Emitter Sales: $64 million in Q1 2025, compared to $71 million in Q1 2024.
- Red Emitter Sales: $21 million in Q1 2025, unchanged from Q1 2024.
- Royalty and License Fees: $74 million in Q1 2025, up from $68 million in Q1 2024.
- Adesis Revenue: $6.6 million in Q1 2025, compared to $3.7 million in Q1 2024.
- Gross Margin: 77% in Q1 2025, compared to 78% in Q1 2024.
- Operating Expenses: $58 million in Q1 2025, down from $65 million in Q1 2024.
- Operating Margin: 42% in Q1 2025, compared to 38% in Q1 2024.
- Cash and Investments: $918 million at the end of Q1 2025.
- Dividend: $0.45 per share, payable on June 30, 2025.
- Share Repurchase Authorization: $100 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Universal Display Corp (OLED, Financial) reported a solid start to 2025 with first-quarter revenue of $166 million, operating profit of $70 million, and net income of $64 million.
- The company sees tremendous growth opportunities in the OLED market, driven by diverse product roadmaps in IT, automotive, and foldable applications.
- Universal Display Corp (OLED) has diversified its supply chain and expanded its global manufacturing footprint, enhancing its operational agility.
- The company has achieved significant advancements in OLED technology, including an eightfold improvement in external quantum efficiency and a 60,000-fold increase in material lifetime.
- A $100 million share repurchase authorization and a $0.45 quarterly dividend reflect the company's commitment to returning capital to shareholders.
Negative Points
- Material sales in the first quarter were $86 million, down from $93 million in the first quarter of 2024, indicating a decline in sales of green emitters.
- The company faces ongoing uncertainty due to global tariff developments, which could impact future orders and revenue.
- First-quarter cost of sales increased slightly to $38 million, resulting in a slight decrease in total gross margins from 78% to 77%.
- The company anticipates flat operating expenses for 2025, which may limit potential for cost reductions or increased profitability.
- Despite progress, the commercialization of blue phosphorescent OLED panels remains challenging, with timelines and pricing terms still uncertain.
