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.
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 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.
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.
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.
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.
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