What happened

Shares of Universal Display Corporation (NASDAQ:OLED) jumped 28.6% in the month of February, according to data provided by S&P Global Market Intelligence, after the OLED specialist announced strong fourth-quarter 2016 results and encouraging guidance.

So what

Revenue for the quarter grew 19.7% year over year, to $74.6 million, and it resulted in a 42.7% increase in net income to 25.8 million. Net income per share also climbed 41%, to $0.55. By comparison, Wall Street was looking for revenue of just $68.6 million, and earnings of $0.42 per share.

Universal Display Corporation Logo

IMAGE SOURCE: UNIVERSAL DISPLAY.

Universal Display's growth was driven by a combination of higher OLED material sales (up 5%, to $29.2 million), an increase in royalty and license fees (up 27%, to $43.6 million), and $1.8 million in contract research services revenue from its acquisition of Adesis last year.

But more importantly -- and just as Universal Display management suggested last August -- the company finally saw customers commence adoption of its next-generation phosphorescent OLED emitter products. The company also made a $15 million investment in a Barberton, Ohio, manufacturing plant owned by PPG Industries, which should double commercial production capacity for its emitters.

Now what

Universal Display also told investors to expect full-year 2017 revenue to be in the range of $230 million to $250 million, or up 15.6% to 25.7% from 2016. That includes a $15 million license fee increase under Universal Display's long-term deal with Samsung Display, and -- if recent supply chain reports prove accurate -- the continued adoption of its flagship materials by other technology behemoths, including Apple.

Of course, Universal Display was quick to note that the OLED industry is still in its early stages, so there are many variables that could temporarily stifle that growth. But as the company's technology becomes more ubiquitous with each passing day, it's no surprise to see Universal Display stock trading near all-time highs right now.

Steve Symington owns shares of Apple and Universal Display. The Motley Fool owns shares of and recommends Apple and Universal Display. The Motley Fool has the following options: long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple. The Motley Fool has a disclosure policy.