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Universal Display Increases Sales but Misses Estimates on Earnings

Universal Display (Nasdaq: PANL  ) reported earnings on Aug. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Universal Display beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded.

Margins expanded across the board.

Revenue details
Universal Display booked revenue of $30.0 million. The 12 analysts polled by S&P Capital IQ expected revenue of $28.8 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $11.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.23. The eight earnings estimates compiled by S&P Capital IQ forecast $0.25 per share. GAAP EPS were $0.23 for Q2 compared to -$0.03 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 60.4%, 3,000 basis points better than the prior-year quarter. Operating margin was 43.1%, 5,260 basis points better than the prior-year quarter. Net margin was 36.6%, 720 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $20.8 million. On the bottom line, the average EPS estimate is $0.10.

Next year's average estimate for revenue is $100.1 million. The average EPS estimate is $0.74.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,201 members out of 1,274 rating the stock outperform, and 73 members rating it underperform. Among 300 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 275 give Universal Display a green thumbs-up, and 25 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Universal Display is outperform, with an average price target of $46.50.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Universal Display. Motley Fool newsletter services recommend Universal Display. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (3) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 09, 2012, at 12:08 PM, sidneyleejohnson wrote:

    why is it that Briefing's inplay report AH last night said PANL met earnings estimates...what is the difference in sources of earnings estimates between Breifings source and yours?

  • Report this Comment On August 09, 2012, at 12:12 PM, sidneyleejohnson wrote:

    actually I rechecked my briefing notes and they sited the same source as you and said that panl met... so what gives...why are you both siting the same source with different conclusions?

  • Report this Comment On August 09, 2012, at 1:15 PM, mitchpatzer wrote:

    Every investment company estimates earnings at different levels. PANL exceeded expectations according to almost all estimates.

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