Universal Display earnings preview


With Universal Display (OLED +3.6%) set to announce Q2 results after the bell, Piper’s Jagadish Iyer has reiterated an Underweight, citing concerns about slowing high-end smartphone sales.

Although Iyer believes Universal will beat Q2 consensus, he sees 2013 revenue coming at the low end of a $110M-125M guidance range.  Iyer observes the consensus for 2013 Galaxy S4 sales has fallen to 60M, below prior estimates and boding poorly for Universal's full-year numbers.

Iver also argues "the overall margin squeeze that Samsung is suffering" is acting as "another motivator" for the company to lower its Galaxy hardware materials costs (previous).

Universal shares recently sold off on reports Samsung is moving to purchase OLED materials/tech provider Novaled. They pared their losses after analysts defended the company.

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Comments (4)
  • Georgerick
    , contributor
    Comments (16) | Send Message
     
    Anyone selling on this years smartphone sales is missing the impact of larger market opportunities for oled in the near future.
    8 Aug 2013, 03:55 PM Reply Like
  • Georgerick
    , contributor
    Comments (16) | Send Message
     
    Anyone selling based on this years earnings is missing the fact smart phone market is a beginning for oled and ignoring the bigger markets for oled in the next few years
    8 Aug 2013, 03:55 PM Reply Like
  • sidney
    , contributor
    Comments (366) | Send Message
     
    "Although the OLED industry is still at a stage where many variables can have a material effect on our growth, the Company now has better visibility into its potential future financial performance and expects 2013 revenues to reach the high end of its $110M-$125M guidance range."- UDC 2Q CC (link to SA's transcript later) . Yeah about that conclusion Iyer ....better return to your drawing board...
    8 Aug 2013, 04:27 PM Reply Like
  • Esekla
    , contributor
    Comments (4478) | Send Message
     
    Iyer is reiterating old news, which I've commented on previously. It doesn't matter if Sammy sells GS4s or not, since they can still sell all the OLED displays they can make to other manufacturers. Earnings were just released and the stock jumped over 20% AH, to almost exactly the price target computed by my article: http://seekingalpha.co...

     

    Not that the editors here thought that was worth much.
    8 Aug 2013, 04:37 PM Reply Like
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