Organic light-emitting diode technology company Universal Display (NASDAQ:OLED) reported better-than-expected results after the market closed on Thursday. The company recorded a positive earnings surprise of 14% with adjusted earnings of $1.12 per share. Moreover, revenues of $160.6 million also came in higher than the consensus expectation of $148 million.
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Additionally, the bottom and top lines were higher than the year-ago quarter by 15.5% and 11.8%, respectively.
As of September 30, the total gross margin was 78%, compared to 80% in the first nine months of 2021.
The company also announced a fourth-quarter dividend of $0.30 per share, payable on December 30 to all shareholders of record on December 16. Management mentioned that the dividend “reflects our expected continued cash flow generation, and commitment to return capital to our shareholders.”
Guidance Reaffirmed
OLED also reiterated its 2022 revenue guidance of $60 million (with leverage of $10 million up or down). Nonetheless, near-term macroeconomic weakness may weigh heavily on demand for products that use OLED’s emitter materials.
Is Universal Display a Buy?
Wall Street is cautiously optimistic about Universal Display stock, with a Moderate Buy rating based on five Buys and one Sell. The average price target of $146.33 indicates an upside of 62.64% over the next 12 months.
