The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Universal Display whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Universal Display logged revenue of $12.5 million. The 12 analysts polled by S&P Capital IQ foresaw revenue of $19.2 million on the same basis. GAAP reported sales were 43% lower than the prior-year quarter's $21.8 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 -$0.12. The nine earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS were -$0.12 for Q3 compared to $0.12 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 23.6%, 2,640 basis points worse than the prior-year quarter. Operating margin was -48.5%, 7,580 basis points worse than the prior-year quarter. Net margin was -43.7%, 7,120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $37.5 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $99.8 million. The average EPS estimate is $0.62.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,213 members out of 1,284 rating the stock outperform, and 71 members rating it underperform. Among 298 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 275 give Universal Display a green thumbs-up, and 23 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 $48.30.
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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 recommend 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.