The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Universal Display beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and GAAP earnings per share increased.
Margins expanded across the board.
Universal Display notched revenue of $18.7 million. The nine analysts polled by S&P Capital IQ foresaw revenue of $17.9 million on the same basis. GAAP reported sales were 73% higher than the prior-year quarter's $10.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.11. The six earnings estimates compiled by S&P Capital IQ averaged $0.06 per share. GAAP EPS were $0.11 for Q4 versus -$0.14 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.2%, 2,040 basis points better than the prior-year quarter. Operating margin was 19.1%, 2,100 basis points better than the prior-year quarter. Net margin was 30.7%, 7,990 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $21.2 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $109.4 million. The average EPS estimate is $0.82.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,036 members rating the stock outperform and 76 members rating it underperform. Among 321 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 300 give Universal Display a green thumbs-up, and 21 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Universal Display is outperform, with an average price target of $52.43.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Universal Display. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.