Universal Display (NASDAQ:PANL) might as well say "let there be light," because there was a lot for investors to like in its most recent quarterly report. This company, which specializes in organic light-emitting diodes, or OLEDs, delivered exactly what investors expected of it in its financial release earlier this week.
Chosen as a Motley Fool Rule Breakers pick for its potential for explosive growth in a new and exciting industry, Universal Panel is a closely watched stock here at the Fool. Indeed, Fool contributor and forecaster Rich Smith took a look at what investors should expect of Universal Display before the release hit the wires, and Universal Display more than delivered.
As Rich described, investors were looking for a narrower quarterly loss this time around -- Universal Display announced a loss of $3 million, or $0.10 per share, better than the $0.13 loss per share that analysts were expecting. Revenues increased 97% to $3.4 million, far better than the 62% jump that was anticipated. These results most certainly give the impression that Universal Display is well on track to profitability as its products gain momentum.
When it comes to cash, Universal Display grew its cash and cash equivalents and short-term investments to $43.6 million: A solid cash position is another element that gives investors a reason to breathe easy.
Of course, it never hurts to think a little bit about the risks, and Universal Display is operating within a brand-new industry where there are plenty of competitors -- Cambridge Display Technology (NASDAQ:OLED) is one of its major rivals, and it obviously has the ticker to prove it. That's not even to mention that some of Universal Display's customers are competitors as well. Sony (NYSE:SNE) and Samsung jump to mind. Where there's the potential for such high growth, there comes, of course, the specter of competitive risk or continued technological change.
Regardless, Universal Display has been a solid performer since it was promoted from the Rule Breakers Universe -- a watch list readily available through the service, which tracks companies with high-growth Rule Breaker attributes -- to a full-fledged Rule Breakers selection. Its shares have increased 30% since that time. Furthermore, judging by Monday's quarterly release, it sounds like it is well on track on its path (which remains a long path, admittedly) to profitability.
Here's more on Universal Display from the annals of Fooldom:
- Rich Smith provides the Foolish forecast.
- Universal Display: a stock for the next generation.
- Here's where Universal Display was back in the spring.
Universal Display is a Motley Fool Rule Breakers selection. To find out what other high-growth stocks have been selected by the Rule Breakers team, click here for a 30-day free trial.
Alyce Lomax does not own shares of any of the companies mentioned.
