Universal Display Goes Red

Universal Display (Nasdaq: PANL  ) reported earnings on Nov. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Universal Display whiffed on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped to a loss.

Margins dropped across the board.

Revenue details
Universal Display logged revenue of $12.5 million. The 12 analysts polled by S&P Capital IQ foresaw revenue of $19.2 million on the same basis. GAAP reported sales were 43% lower than the prior-year quarter's $21.8 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 -$0.12. The nine earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS were -$0.12 for Q3 compared to $0.12 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 23.6%, 2,640 basis points worse than the prior-year quarter. Operating margin was -48.5%, 7,580 basis points worse than the prior-year quarter. Net margin was -43.7%, 7,120 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $37.5 million. On the bottom line, the average EPS estimate is $0.34.

Next year's average estimate for revenue is $99.8 million. The average EPS estimate is $0.62.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,213 members out of 1,284 rating the stock outperform, and 71 members rating it underperform. Among 298 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 275 give Universal Display a green thumbs-up, and 23 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 $48.30.

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.


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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 November 08, 2012, at 10:58 PM, sidneyleejohnson wrote:

    I think the unfortunate thing about automated coverage like this is that it can't be responsive to the fact that nearly every analyst lowered their Q4 estimate to match the new guidance that management provided at the Q3E/CC. this guidance forced every analyst worth his/her job to lower their estimates to be in the range of 80-82M revenue for the year and since the first 3 quarters are already reported you end up with ~27M and it gives each analyst a 2M spread to pick from for Q4 to stay within management guidance. So this "Next quarter's average estimate for revenue is $37.5 million." has been completely invalidated in the last 24 hours. Please refrain from running this kind of automated garbage until you can start adjusting its garbage output for real facts that come out after earnings are reported in Conference calls. It just makes the Fool look especially foolish in being unresponsive to new facts.

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