Shares of Universal Display Corporation (NASDAQ:OLED) were up 12.4% as of 2:45 p.m. EDT Wednesday after Samsung Electronics made positive comments on the OLED industry.
Keeping in mind that Samsung affiliate Samsung Display is Universal Display's single largest customer, Samsung management noted during its third-quarter call that the company's OLED earnings "improved significantly" from last quarter "thanks to growing sales led primarily by increasing demand for flexible panels."
Samsung added that its OLED segment earnings should be "solid" in the fourth quarter thanks to "strong demand from major customers," particularly as OLED panels continue to increase their penetration of the broader display market. Furthermore, Samsung promised new device models featuring OLED displays in 2019, as well as sustained sales growth by focusing on flexible OLED panel demand.
Naturally, this appears to be great news for Universal Display given it licenses its OLED-centric IP and sells its proprietary OLED emitter materials to Samsung. But it also shouldn't come as a big surprise considering it matches comments Universal Display management made in August, when the company suggested orders would accelerate in the second half before shifting to more sustained growth beginning in 2019.
Of course, we'll know more about how these positive industry trends are contributing to Universal Display's top and bottom lines when it releases its own third-quarter results tomorrow (Thursday, Nov. 1) after the market closes. But in the meantime, if Samsung's comments today are any indication, Universal Display investors should have plenty of reason to celebrate when that report hits the wires.