OLED display specialist Universal Display late Thursday crushed estimates for the fourth quarter but forecast declining sales in the year ahead. Still, OLED stock rose in extended trading.
The Ewing, N.J.-based company earned $1.36 a share on sales of $169 million in the December quarter. Analysts polled by FactSet had predicted Universal Display earnings of 94 cents a share on sales of $149 million. On a year-over-year basis, Universal Display earnings jumped 42% while sales increased 16%.
Universal Display forecast 2023 revenue of $550 million to $600 million. The midpoint of $575 million is well below Wall Street's target of $628.7 million. It's also below the company's 2022 sales of $616.6 million, which was an 11% increase from the prior year.
Universal Display makes technologies and materials used in OLED displays for smartphones, televisions and other devices. OLED is short for organic light-emitting diode. It also produces OLED lighting products.
OLED Stock Is On Tech Leaders List
In after-hours trading on the stock market today, OLED stock rose 1.5% to 131.50 During the regular session Thursday, shares climbed 1.1% to close at 129.56.
"As we look to 2023, while macro uncertainties persist, we are continuing to build upon our leadership position in the OLED ecosystem," Chief Financial Officer Brian Millard said in a news release. "This includes continued discovery and development of next-generation phosphorescent materials, progress on the development of our commercial phosphorescent blue and groundbreaking OVJP (organic vapor jet printing) manufacturing platform."
Universal Display predicts 2024 will be a pivotal year for the start of a new OLED adoption cycle, Millard said.
OLED stock is on the IBD Tech Leaders stock list. It ranks fourth out of 36 stocks in IBD's Electronics-Miscellaneous Products industry group, according to IBD Stock Checkup. Shares also have an IBD Composite Rating of 85 out of 99.
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