Universal Display CorporationNASDAQ
Mid Or End Game For Universal Display?
Esekla • 26 Comments
Esekla • 26 Comments
Fri, Nov. 4, 2:26 PM
- Results – revenue $30.21M ($2.74M below estimates), EPS $0.03 ($0.01 above estimates), $1.5M net loss (vs. $7M net income Y/Y)
- FY 2016 projections – revenue $190M-$200M (consensus $195.2M)
- Universal Display (NASDAQ:OLED) EVP and CFO Sidney Rosenblatt: "Leading panel makers are building capacity for the next wave of high volume OLED production to begin ramping next year, OEMs are building new OLED product roadmaps, and we are building our infrastructure to meet the growing needs of our expanding customer base . . . As we anticipate resuming our growth trajectory in 2017, we continue to build up our core competencies. The display and lighting industries are evolving, and we believe we are well positioned to continue to play a pivotal role in the OLED market’s future. We have expanded our global footprint, increased our headcount to approximately 200 employees, bolstered our IP portfolio to over 4,200 issued and pending patents worldwide, and continue to broaden our rich portfolio of proprietary OLED technologies and phosphorescent materials. These investments, in addition to our other strategic initiatives, buttress our committed path of continuous innovation and next-generation solutions, our strong leadership position in the OLED ecosystem, and our confidence in the long-term growth path of OLEDs."
- Share price summary – 1-month, +5%; 3-month, -21%; 1-year, +51%
- Earnings call transcript
- Press release
Thu, Nov. 3, 4:17 PM
Wed, Nov. 2, 5:35 PM
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Fri, Aug. 5, 11:32 AM
- Universal Display (OLED -9.8%) reported lower-than-expected top and bottom-line figures in its Q2 report and although revenue was up 10.8% against the year-ago period, management forecasts upcoming near-term revenue pressure.
- Executive Vice President and CFO Sidney Rosenblatt: "Our second quarter 2016 revenues and net income increased year-over-year, and we maintained our strong margin profile. We are confident that the underlying growth fundamentals of our long-term outlook remain robust, but near-term, we expect our revenue growth will be delayed by about six months."
- The company accordingly revises its revenue guidance for FY 2016 to $190M-$200M.
- Earnings call transcript
- Press release
Thu, Aug. 4, 4:13 PM
Wed, Aug. 3, 5:35 PM
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Wed, Jun. 29, 2:47 PM
- Universal Display (OLED +1.9%) is higher after agreeing to acquire BASF's (OTCQX:BASFY +2.3%) organic light emitting diode intellectual property assets for ~€87M.
- OLED says the assets include more than 500 issued and pending patents around the world, and are aimed at accelerating development of commercial blue phosphorescent emissive materials.
- Needham reiterates a Buy rating and $69 price target on OLED, saying that combined with last week's acquisition of a contract research firm specializing in advanced materials development, the moves are a good use of cash that could erect additional barriers against competitors as OLED displays gain broader adoption.
- Even as it reiterates a Hold rating, Gabelli notes that light blue and dark blue emitter materials are "the holy grail" of OLED emitter materials, and the company will continue to strive to be able to launch the first commercial light blue and dark blue emitter materials.
Fri, Jun. 17, 2:09 PM
- Japan's Nikkei reports Samsung (OTC:SSNLF, OTC:SSNNF) plans to spend KRW8T ($6.82B) in 2016 to increase its smartphone OLED panel capacity by over 50%, or more than 200M/year. Samsung is believed to already have the capacity to produce 300M+ smartphone OLED panels per year.
- The report follows ones indicating Apple (NASDAQ:AAPL) plans to launch iPhones featuring OLEDs in 2017, with some of the reports stating Samsung and LG Display (LPL -0.3%) will be among the suppliers. A Korean news service reported in April Samsung will supply 100M 5.5" OLEDs annually to Apple starting next year. The Nikkei suggests Apple will partly rely on OLEDs for its 2017 iPhone lineup.
- OLED materials/IP provider Universal Display (OLED +0.3%) has moved slightly higher following the report. Industrial laser maker Coherent (COHR -0.4%) also stands to benefit from major OLED investments, as does chip equipment giant Applied Materials (AMAT -1%).
Mon, May 23, 10:22 AM
- "Given recent field work, we are increasingly confident on Apple’s [OLED] adoption potential and add this to our modeled estimates for 2017-2018," writes Goldman's Brian Lee, upgrading Universal Display (OLED +10.4%) to Buy and hiking his target by $21 to $76. "Specifically, Apple and Samsung analysts Simona Jankowski and Marcus Shin, expect roughly 33mn/113mn total iPhone shipments to use OLED displays, and this is a primary driver of our 4%/25% increase in F17/F18 EPS to $1.93/$2.70 for OLED."
- His 2017 estimate is above a $1.64 consensus. Lee adds there could be a "hockey-stick" like increase in OLED use by phone OEMs in later years, and thinks Universal could eventually earn as much as $15/share in a "blue sky" scenario in which OLEDs are widely adopted for devices with larger displays, such as tablets and TV sets.
- There have already been a slew of analyst and supply chain reports indicating Apple plans to launch iPhones sporting OLEDs next year. Universal rallied on Friday after Applied Materials reported a massive increase in display equipment orders that it attributed to mobile-related OLED equipment demand.
- Shares are within $1 of a 52-week high of $63.00.
Fri, May 20, 10:56 AM
- Lam Research (LRCX +4.1%), KLA-Tencor (KLAC +2.3%), ASML (ASML +2.2%), Axcelis (ACLS +3.9%), Kulicke & Soffa (KLIC +3%), Ultratech (UTEK +3.5%), Teradyne (TER +2.3%), Rudolph Technologies (RTEC +2.6%), and Xcerra (XCRA +2.7%) are outperforming after Applied Materials (AMAT +13.2%) beat FQ2 estimates, provided FQ3 guidance that was well above consensus, and reported FQ2 orders rose 52% Q/Q and 37% Y/Y to $3.45B. The Nasdaq is up 1.2%.
- Applied's order growth was fueled in large part by display equipment orders totaling $700M, up sharply from $183M in the prior quarter and $120M a year ago. On its earnings call, AMAT said display order strength is likely to continue "over the rest of 2016," and is being driven by mobile-related OLED investments - many reports have indicated Apple plans to bring iPhones sporting OLEDs to market next year.
- OLED materials/IP provider Universal Display (OLED +5.2%) is rallying. As are display panel makers LG Display (LPL +6.5%) and AU Optronics (AUO +3.2%), each of which have been stepping up their OLED investments, and industrial laser maker Coherent (COHR +2.5%), which has recently seen an OLED-related order surge.
- Also: Applied's NAND flash-related orders more than doubled Y/Y to nearly $1B thanks to its customers' 3D NAND investments. That more than offset softer DRAM and foundry-related chip equipment demand. On the call, Applied suggested NAND orders will slow a bit in the second half of FY16, but remain strong overall. Foundry demand is expected to grow somewhat this year, with Applied gaining share. Industry wafer fab equipment demand is expected to be flat to slightly up.
- B. Riley has upgraded Applied to Buy, and several firms have hiked their targets. Cowen's Tim Arcuri thinks $3 in annual EPS is now possible. Credit Suisse's Farhan Ahmad: "AMAT is clearly outgrowing peers this year, driven by favourable mix shift within WFE (NAND/Foundry increasing, DRAM declining) and strong growth in Display (China/OLED investments)."
Thu, May 5, 4:22 PM
- Universal Display (NASDAQ:OLED): Q1 EPS of $0.04 beats by $0.04.
- Revenue of $29.7M (-4.9% Y/Y) misses by $1.86M.
- Shares -9%.
Wed, May 4, 5:35 PM
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Mon, Mar. 7, 2:09 PM
- Stifel's Patrick Newton, hiking his Coherent (COHR +3.2%) target by $18 to $100: "Our research indicates the Apple (NASDAQ:AAPL) supply chain is ramping for OLED production across its portfolio, likely in the 2018 timeframe, requiring a significant investment in OLED hardware, including Coherent’s Excimer Laser Assembly (ELA) Linebeam products." His FY16 (ends Sep. '16) and FY17 EPS estimates have been respectively hiked by $0.15 and $0.20 to $4.40 and $5.25; consensus is at $4.44 and $5.07.
- Newton: "We note technologies that use Coherent’s solution, specifically low temperature polysilicon (LTPS), has significantly higher share in OLED production relative to LCD. Our research indicates benefits from the OLED shift extend beyond hardware with the higher utilization of laser discharge units (LDUs) increasing the company’s service revenue relative to LCD, all else equal." He also observes Coherent's OLED-related laser sales carry higher margins than its LCD-related sales.
- The note comes five weeks after Coherent reported (along with FQ1 results) strong OLED-related orders for its Linebeam laser systems, and forecast the orders would continue through 2017. It also follows multiple reports indicating Apple plans to use OLEDs in future iPhones - the Nikkei reported of a 2018 ETA.
- Universal Display (OLED +5.1%) is going in the same direction as Coherent, much as it did after Coherent's FQ1 report. Shares have more than recovered the losses seen after Universal posted a Q4 miss and issued light 2016 guidance on Feb. 25.
Thu, Feb. 25, 5:45 PM
Thu, Feb. 25, 4:28 PM
- In addition to missing Q4 estimates, Universal Display (NASDAQ:OLED) is guiding for 2016 revenue to be up 15% Y/Y (+/- 5%). Consensus is for revenue to rise 29% to $246.3M.
- The Q4 miss is primarily blamed on "year-end inventory management by our customers and product mix weighing more to our lower priced emitters" - Samsung's smartphone ops continued having a rough time in Q4.
- Universal maintains an upbeat tone regarding long-term OLED growth. "We believe that 2016 is poised to be a year in which the OLED industry builds meaningful new capacity for the continued proliferation of OLEDs in the marketplace ... As noted by a number of companies in the ecosystem, the OLED design pipeline is growing robustly, and we anticipate that this will drive new capacity plans for 2017, 2018 and beyond."
- Q4 details: Material sales fell 1% Y/Y in Q4 to $27.8M, with a $5.3M drop in host material sales offsetting a $4.9M increase in emitter sales. Royalty/license fee revenue rose 23% to $34.4M, with Samsung contributing $30M (up from $25M a year ago). Material gross margin was 71% vs. 79% in Q3 and 57% a year ago; the year-ago figure was hurt by a $3.9M inventory write-down.
- OLED -14.3% after hours to $42.60.
- Universal's Q4 results, earnings release
Thu, Feb. 25, 4:10 PM
- Universal Display (NASDAQ:OLED): Q4 EPS of $0.39 misses by $0.12.
- Revenue of $62.3M (+10.9% Y/Y) misses by $9.24M.
- Shares -10%.