Universal Display earnings preview

|About: Universal Display Corporation (OLED)|By:, SA News Editor

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.