What happened

Shares of Universal Display (NASDAQ:OLED) skyrocketed as much as 21.3% early Friday, then settled to trade up 8.6% as of 2:00 p.m. EDT after the OLED technology leader announced strong first-quarter 2019 results and raised its full-year outlook.

More specifically, Universal Display's quarterly revenue climbed 101.4% year over year to $87.8 million, translating to GAAP net income of $31.5 million, or $0.66 per share. Though we don't usually pay close attention to Wall Street's expectations, most analysts were modeling earnings closer to $0.29 per share on revenue of $64.3 million.

Universal Display jars with samples of OLED material in front of them.

IMAGE SOURCE: UNIVERSAL DISPLAY.

So what

Universal Display's OLED material sales more than doubled on a year-over-year basis to $54.5 million, while royalty and license revenue climbed over 90% to $30.3 million. Contract research services revenue also jumped $24.4 million to $3 million, stemming from Universal Display's acquisition of CRO Adesis in 2016.

"We are pleased to report solid first-quarter 2019 results," stated CFO Sid Rosenblatt. "As seen by leading OEM product launches, OLEDs are the display technology of choice for premium smartphones and TVs."

Now what

Looking ahead to full-year 2019, Universal Display now expects revenue ranging from $345 million to $365 million, up from its previous guidance for $325 million to $350 million and representing 43.5% growth from 2018 at the midpoint.

In the end, this was a straightforward beat-and-raise scenario that the market is rightly applauding. And Universal Display stock is responding accordingly.

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