OLED provider Universal Display (NASDAQ:OLED) will be announcing earnings results this Thursday after market close. Here’s what investors should know.
Universal Display missed analysts’ revenue expectations last quarter, reporting revenues of $142.2 million, down 14.5% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and underwhelming full-year revenue guidance.
Is Universal Display a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Universal Display’s revenue to decline 8.1% year on year, a reversal from the 8.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Universal Display has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Universal Display’s peers in the analog semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Texas Instruments delivered year-on-year revenue growth of 22.8%, beating analysts’ expectations by 3.8%, and NXP Semiconductors reported revenues up 19.5%, topping estimates by 0.8%. Texas Instruments traded down 3.1% following the results.
Read our full analysis of Texas Instruments’s results here and NXP Semiconductors’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). Unfortunately, analog semiconductors stocks have struggled in this environment as share prices are down 20.1% on average over the last month. Universal Display is down 4.6% during the same time and is heading into earnings with an average analyst price target of $125.89 (compared to the current share price of $82.29).
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