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Universal Display Corporation (OLED)

- NASDAQ
  • Tue, Mar. 17, 5:38 PM
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  • Tue, Mar. 17, 2:50 PM
    • Universal Display (NASDAQ:OLED) has surged to new 52-week highs again. Today's gains have come on volume of 1.54M shares, more than 2x a 3-month daily average of 689K.
    • Universal has been buoyed by reports of strong early interest in Samsung's Galaxy S6, and perhaps also by expectations Apple Watch will use OLEDs (though this has been expected for some time).
    • Also, there have been reports Samsung's phone mix is shifting towards OLED models relative to LCD models. The electronics giant's high-end phones have relied on OLEDs for a long time, but it still uses LCDs for many cheaper models.
    | 2 Comments
  • Fri, Mar. 13, 3:15 PM
    • The Nasdaq is down 0.9%, and major tech decliners are outnumbering major gainers by a sound margin.
    • Notable gainers include 3D printer maker ExOne (XONE +2.7%), OLED materials/IP provider Universal Display (OLED +3.9%), stock photo marketplace Shutterstock (SSTK +4%), flash storage array vendor Violin Memory (VMEM +8.2%), and Wi-Fi hardware vendor Aerohive (HIVE +4.6%).
    • For the second day in a row, Chinese companies are well-represented among major decliners. The list includes online retailer Vipshop (VIPS -4.8%), microblogging platform Weibo (WB -4.2%), auto site Autohome (ATHM -4.3%), online real estate plays SouFun (SFUN -5.3%) and Leju (LEJU -5.9%), and mobile game publisher iDreamSky (DSKY -4.5%).
    • Other major decliners include flash sales site Zulily (ZU -5.8%), server maker Super Micro (SMCI -3.7%), fleet management software vendor FleetMatics (FLTX -3.9%), and 4G baseband modem maker Sequans (SQNS -9.1%).
    • Universal Display is adding to yesterday's big gains, and appears to be benefiting from early signs of strong Galaxy S6 demand. Zulily has reversed yesterday's gains. Weibo's losses come two days after the company posted a Q4 revenue beat and offered in-line guidance.
    • Previously covered: IBM, Ebix, NXP/Freescale, Qiwi, eHealth, Pandora, InterCloud, ChipMOS, Demandware, Imperva, Rudolph, Globalstar, ChannelAdvisor
    | 3 Comments
  • Thu, Mar. 12, 12:45 PM
    • Universal Display (NASDAQ:OLED) has rallied to new 52-week highs today. Its move has come on volume of 1.26M shares, well above a 3-month daily average of 662K.
    • Signs of strong early demand for Samsung's (OTC:SSNLF) Galaxy S6 and S6 Edge (unveiled on March 1, going on sale on April 10) could be giving the OLED materials/IP provider a lift. Samsung has announced S6 pre-orders have topped 20M, and Korea's Electronic Times has reported Samsung has upped its April S6/S6 Edge production target by 1M to 8M.
    • The S6 sports a quad-HD OLED display that requires more materials than the S5's 1080p display. Its use of a metal/glass body (as compared with the plastic bodies of its predecessors) has been well-received.
    • Samsung's shares have already benefited from S6 enthusiasm: Though they fell overnight in Seoul, they're still up 7% since the March 1 launch event.
    | 4 Comments
  • Thu, Mar. 5, 2:11 PM
    • "LG will have [a high dynamic range] OLED solution available this year. We expect we’ll start to make a bit more noise about this around the time of the IFA technology show in September," says LG exec Robert Taylor. He adds creating an HDR OLED set is a priority for LG, and that the self-emissive nature of OLEDs makes them a superior solution for HDR than LCDs.
    • Taylor cautions commercializing HDR remains a work in progress. "[W]e’ve got the easy job; we display it. The broadcasters and the movie studios are the ones who have to figure out how to code it, how to distribute it, how to commercialize it, how to infrastructure it. And they’re just not there yet."
    • LG recently unveiled a curved 65" 4K OLED set that will sell for a steep $8,999 in April. Subsidiary LG Display (LPL -0.7%) significantly expanded OLED production in December, and plans to create a new large-panel OLED production line later this year; Samsung still accounts for the lion's share of OLED panel output.
    • Universal Display (OLED) is up strongly today, adding to the big Monday gains it saw after Samsung launched the Galaxy S6.
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  • Thu, Feb. 26, 5:09 PM
    • Though it beat Q4 revenue estimates (while missing on EPS), Universal Display (NASDAQ:OLED) is setting a 2015 "base revenue forecast" of $200M, below a $211.4M consensus. The company believes the forecast has a "downside range" of 5%, and "upside potential" of 15%.
    • The outlook is attributed to uncertain timing for OLED TV and flexible OLED production ramps, as well as for new mobile products featuring OLED displays. It assumes $60M in Samsung license revenue, and a one-quarter lag in LG Display royalty payments.
    • CFO Sidney Rosenblatt: "The key takeaway is that we believe this transitional year of strategic capacity investment and product expansion in the OLED industry will set the framework for the next wave of market growth, which we anticipate to more fully materialize in 2016 and beyond."
    • Materials sales rose 10% Y/Y in Q4 to $28.1M, after declining 9% in Q3 (believed to be due to a lack of host materials sales for the Galaxy Note 4). Royalty/license fees rose 21% to $28M, with Samsung making a $25M payment (up from $20M a year ago).
    • Hurting EPS: Materials gross margin fell to 57% from 73% in Q3 and 70% a year ago; Universal notes materials costs rose thanks to a $3.9M inventory write-down, as well as mix changes and higher shipments. Operating expenses (including materials costs) rose 30% Y/Y to $39.1M.
    • Shares have fallen to $35.25 AH.
    • Q4 results, PR
    | 5 Comments
  • Mon, Feb. 2, 12:15 PM
    • Citing the company's recent LG Display licensing deal, Cowen has hiked its Universal Display (NASDAQ:OLED) target by $10 to $50, while reiterating an Outperform.
    • Shares are up 19% since the LG deal was announced last Monday. 8.8M shares (26% of the float) were shorted as of Jan. 15.
    | 1 Comment
  • Mon, Jan. 26, 9:16 AM
    • Universal Display (NASDAQ:OLED) has struck an OLED patent licensing deal with LG Display (NYSE:LPL) that runs through the end of 2022. Universal will also supply LG with phosphorescent OLED materials.
    • The licensing deal features license fees and running royalties. Universal CEO Steven Abramson: "We are excited to enter into these agreements with our long-term partner LG Display, a global technology innovator who is leading the charge for OLED TVs, evidenced by its recent CES showcase of new 4K models ranging from 55, 65 and 77 in flexible, curved and flat form factors."
    • Depending on LG's production ramp, the deal could lower Universal's dependence on top customer Samsung, which recently opted not to use Universal's host materials in new hardware. Universal has risen to $35 in premarket trading.
    • Previously: Universal strikes licensing deal with Sumitomo
    | 11 Comments
  • Mon, Jan. 26, 9:14 AM
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  • Wed, Jan. 14, 1:20 PM
    • A slew of tech companies have posted steep losses on a day the Nasdaq is down 1%.
    • Major decliners include Pandora (P -5%), LED giant Cree (CREE -5.9%), cloud HR software leader Workday (WDAY -4.1%), chipmakers Ambarella (AMBA -5.3%), Pixelworks (PXLW -3.7%), Audience (ADNC -3.6%), Spansion (CODE -4.4%), and Cypress (CY -3.9%) (the last two are merger partners), OLED materials/IP provider Universal Display (OLED -4.2%), industrial automation tech provider Echelon (ELON -4.8%), and P2P lending giant/recent IPO LendingClub (LC -4.8%).
    • Possibly affecting OLED: LG Display (NYSE:LPL) has been ordered to halt operations at an OLED TV panel production line following a gas leak that killed two workers.
    • Cree and Pandora aren't far removed from their 52-week lows; the former reports on Jan. 20, and the latter on Feb. 5. LendingClub, whose selloff follows a volatile Tuesday, could be affected by a neutral coverage launch from Susquehanna.
    | 4 Comments
  • Nov. 14, 2014, 8:50 AM
    • Believing growth will slow in 2015, Oppenheimer has downgraded Universal Display (NASDAQ:OLED) to Perform. Nonetheless, its target is at $35.
    • The downgrade comes a week after OLED slashed its 2014 revenue guidance, while blaming soft high-end Samsung phone sales and "lower host material sales as the result of our host materials not being used in certain new product offerings."
    | 2 Comments
  • Nov. 6, 2014, 5:07 PM
    • Universal Display (NASDAQ:OLED) now expects 2014 revenue of $183M-$185M, below a $203.6M consensus. The company previously forecast revenue would be at the high end of an initial $190M-$205M guidance range.
    • Universal attributes its Q3 revenue miss to weaker-than-expected high-end phone sales - top customer Samsung's high-end sales have come under pressure - and (notably) to "lower host material sales as the result of our host materials not being used in certain new product offerings."
    • On Monday, Canaccord declared it believes Universal is losing green host material share within Samsung's phone lineup to Samsung affiliate Cheil Industries.
    • Materials sales fell 9% Y/Y in Q3 to $27.5M; royalty/license fee revenue rose 260% to $5.4M. Opex fell 6% to $26.8M. $22.5M was spent on buybacks.
    • Q3 results, PR
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  • Nov. 3, 2014, 1:12 PM
    • Canaccord's Jonathan Dorsheimer believes Universal Display (NASDAQ:OLED) is set to lose OLED green host material share to Samsung affiliate Cheil industries for the Galaxy S5, and also sees Samsung using Cheil as a supplier for future phones.
    • In a base case scenario, Dorsheimer sees Universal losing 33% of its 2H14 green host sales, and 50% in 2015 and beyond. He estimates such a loss would respectively affect 2H14, 2015, and 2016 sales by $8.4M, $30.4M, and $29.4M. A bear-case scenario of 100% share loss yields estimated revenue losses of $16.7M, $60.8M, and $58.8M.
    • Dorsheimer does note Universal could benefit from Apple Watch-related materials sales - Apple Watch is believed to feature an OLED display, and Universal client LG Display (LPL -0.3%) is the rumored supplier. But he thinks the device might only yield $1M-$2M in quarterly revenue for Universal.
    • Q3 results are due on Thursday. Universal plunged in July in response to news Samsung/Cheil is buying German OLED materials provider Novaled, but rebounded after analysts argued Novaled's offerings are complementary.
    | 3 Comments
  • Oct. 7, 2014, 12:25 PM
    • Universal Display (OLED -2.6%) has sold off after top customer Samsung warned its Q3 sales will be down ~20% Y/Y due to mobile weakness.
    • Samsung, contending with both tough Chinese competition and the iPhone 6 launch, mentioned a declining smartphone ASP took a toll on its results. That suggests sales of the high-end devices (the Galaxy S5, Note 3, etc.) that Universal depends heavily on for OLED materials says may have been particularly soft.
    | 5 Comments
  • Aug. 7, 2014, 5:38 PM
    • Universal Display (NASDAQ:OLED) reiterates it expects 2014 revenue to "reach the high end" of a $190M-$205M guidance range (consensus is at $205.7M). The reiteration comes in spite of top customer Samsung's recent struggles.
    • Q2 materials sales +32% Y/Y to $35.9M; they grew 38% in Q1. Royalty/license fees +33% Y/Y to $28.1M; Samsung made a $25M payment.
    • Materials gross margin was 66.6%, down from 72% in Q1 and 69.3% a year ago. GAAP costs/expenses +28% to $35.3M, with R&D spend totaling $10.5M.
    • $7M was spent on buybacks, following the June launch of a $50M buyback program.
    • Shares +0.8% AH. Q2 results, PR
    | 1 Comment
  • Jul. 18, 2014, 2:51 PM
    • "We believe Skyworks’ (SWKS +13.5%) diverse analog portfolio is enabling content share gains in its handset customer base," writes Canaccord after taking in the RF component giant's FQ3 beat and very strong FQ4 guidance.
    • Canaccord thinks the FQ4 outlook is due to a mixture of strong iPhone 6 content share, growing sales of higher dollar-content integrated solutions to Chinese/emerging markets OEMs (gaining Android share), and "growing traction" for the company's non-phone analog IC business.
    • 802.11ac Wi-Fi, mobile infrastructure, and embedded products (the proverbial "Internet of Things") are some of the non-mobile RF markets Canaccord sees Skyworks growing its sales to. Needham, for its part, also sees the smart grid, automotive, and medical markets providing a boost.
    • On the CC (transcript), CEO David Aldrich declared broader mobile RF demand is benefiting from the need to support a larger number of spectrum bands - Avago (AVGO +4.3%) also benefits from this - as well as growing system complexity (driving a shift towards integrated solutions) and OEM efforts to improve signal performance.
    • RF component peers Avago, RF Micro (RFMD +6.7%), TriQuint (TQNT +6.8%), and Resonant (RESN +7%) are outperforming amid a tech rally, as are several other mobile suppliers. INVN +3.9%. HIMX +2.9%. OLED +5.3%. CRUS +2.9%.
    | 1 Comment
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Company Description
Universal Display Corp is engaged in the research, development & commercialization of organic light emitting diode or OLED, technologies & materialsfor use in displays for wearables, smartphones, tablets & televisions & solid-state lighting applications.
Sector: Technology
Country: United States