Shares of Universal Display (OLED -2.40%) 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'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."
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.