What happened

Shares of Universal Display Corporation (NASDAQ:OLED) were up 10.6% as of 12:30 p.m. EDT Friday after the OLED technologist announced strong third-quarter 2017 results.

More specifically, Universal Display's quarterly revenue climbed 104% year over year to $61.7 million. Net income skyrocketed to $13.5 million, or $0.28 per diluted share, swinging from a loss of $1.5 million, or $0.03 per share in the same year-ago period. Investors were only anticipating earnings of $0.12 per share on total revenue of $47.1 million.

Three bottles containing Universal Display's OLED emitter materials.

Image source: Universal Display

So what

Universal Display CFO Sidney Rosenblatt stated:

We are pleased to report another outstanding quarter of solid results. During the quarter, momentum in the OLED industry continued to grow, from the launch of new flagship OLED smartphones, to increasing demand for OLED TVs, to announced launch plans for the world's first foldable OLED display product. It is exciting to see the consumer market's broadening embrace of OLEDs in a myriad of products, including wearables, smartphones, IT, automotive, TVs, as well as the emergence of OLED lighting.

To be sure, Universal Display's top-line gains included 100% growth in material sales to $47 million, and a 131% increase in royalty and license fees to $12 million. Contract research services revenue also jumped more than 70% to $2.6 million, primarily driven by Universal Display's acquisition of Adesis last year.

Investors should also note this quarter did not include a license payment from Samsung Display per the two companies' long-term patent license and material supply agreement. Those payments, totaling $90 million in 2017 (up from $75 million in 2016), arrive in two equal chunks in the second and fourth quarters of each year.

Now what

Given its relative outperformance in the third quarter, Universal now anticipates full-year revenue will arrive in the range of $310 million to $320 million, a big jump from guidance provided last quarter for 2017 revenue of $285 million to $300 million.

In the end, this was a straightforward beat-and-raise scenario for Universal Display. And it's no surprise to see shares trading at all-time highs right now.

Steve Symington owns shares of Universal Display. The Motley Fool owns shares of and recommends Universal Display. The Motley Fool has a disclosure policy.