Mark Hibben
Long only, tech, chipmakers, software

Universal Display: Outstanding Revenue Growth Will Begin To Taper This Year

Outstanding Results

Universal Display's (NASDAQ:OLED) earnings report of May 8 demonstrated outstanding y/y quarterly revenue growth of 152% to $37.8 million on the strength of 177% growth in its materials sales business. Although gross margin declined slightly by 5% to 72%, UDC is managing this growth well, with a 41% increase in operating expenses. Operating income was $6.628 million vs. an operating loss in Q1 2013 of $7.154 million.

UDC's solid numbers lifted the stock by 15% the following day, but then the market took it all back within a few days. Since then, the stock has struggled to make up what it lost in the aftermath of the earnings report.

Analysts have also been underwhelmed. Canaccord Genuity...

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