Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of LED supplier Universal Display
So what: While Universal's first-quarter loss narrowed significantly, a clear miss on the top line -- $12.6 million versus the consensus of $16.4 million -- is reigniting concerns over a slowdown in demand. Of course, management noted that the results were affected by the timing of licensing fees from Samsung Electronics, suggesting that today's pullback is a bit of an overreaction.
Now what: Management reaffirmed its full-year revenue outlook of $90 million-$110 million, versus Wall Street's view of $104.7 million. "As the industry grows and now that our agreement with Samsung is in place, we have a little more visibility into our potential future financial performance" CFO Sid Rosenblatt said in a conference call with analysts. "Of course the OLED industry is still at a stage where many variables could have a material effect on growth in our future financial performance." With the stock now off more than 40% from its 52-week highs, much of that uncertainty might already be baked into the price.
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