The 10-second takeaway
For the quarter ended March 31 (Q1), Universal Display whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share dropped.
Margins increased across the board.
Universal Display tallied revenue of $12.6 million. The 10 analysts polled by S&P Capital IQ foresaw a top line of $16.3 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $9.6 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 -$0.03. The seven earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS were -$0.03 for Q1 against -$0.31 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 21.8%, 1,010 basis points better than the prior-year quarter. Operating margin was -12.3%, 1,630 basis points better than the prior-year quarter. Net margin was -9.7%, 11,410 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $28.5 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $102.3 million. The average EPS estimate is $0.75.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,136 members rating the stock outperform and 72 members rating it underperform. Among 326 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 302 give Universal Display a green thumbs-up, and 24 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 $52.88.
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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. The Motley Fool owns shares of Universal Display. 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.