NASDAQ$OLED

Universal Display Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Universal Display reported solid Q3 2020 results with increased revenue driven by higher material sales due to stronger demand in the OLED display market.

Universal Display Corporation reported a revenue of $117.1 million for the third quarter of 2020, compared to $97.5 million in the third quarter of 2019. The increase in revenue was due to higher material sales as a result of stronger demand in the OLED display market. Net income was $40.5 million, or $0.85 per diluted share, compared to $37.0 million, or $0.78 per diluted share, in the third quarter of 2019.

  • Total revenue increased to $117.1 million, up from $97.5 million in Q3 2019.
  • Material sales revenue rose to $68.7 million, compared to $51.8 million in Q3 2019.
  • Royalty and license fees revenue increased to $44.6 million, up from $43.0 million in Q3 2019.
  • Operating income increased to $48.4 million, compared to $40.8 million in Q3 2019.

Headline financials

Total Revenue

$117M

Previous: $97.5M+20.1%
EPS (adj)

$0.85

Previous: $0.78+9.0%
Total gross margin

70.0%

Previous: 71.0%-1.4%
Capital Expenditures

-$19.2M

Previous: -$25.3M+24.1%
Free Cash Flow

$21.3M

Previous: $11.6M+82.8%
Net Income

$40.5M

Previous: $37M+9.6%
Operating Income

$48.4M

Previous: $40.8M+18.6%
Gross Profit

$93.7M

Previous: $80.2M+16.8%
Cash & Equivalents

$163M

Previous: $236M-31.0%
Total Assets

$1.22B

Previous: $1.06B+15.3%
Stock-Based Comp

$6.89M

Previous: $3.59M+91.8%

Revenue & EPS history

Universal Display · Revenue · Quarterly

$117M

Q3 2020+20.1%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Universal Display · $117M total across 3 segments · Q3 2020

  • Material sales
    $68.7M+32.5%
  • Royalty and license fees
    $44.6M+3.6%
  • Contract research services
    $3.82M+43.4%

Forward guidance

The Company believes that its 2020 revenue will be approximately in the range of $385 million to $400 million.

Tailwinds

  • OLED panel momentum will continue in the fourth quarter.
  • Meaningful growth to resume in 2021 as new OLED production comes online.
  • New OLED consumer electronic models are launched.
  • Customers continue to advance their OLED commercialization plans.
  • Flexibility and versatility of OLEDs continue to broaden the imagination and transform the definition of what a consumer product can be.

Headwinds

  • Ongoing uncertainties related to the COVID-19 pandemic persist.
  • The full extent of the impact of the on-going COVID-19 pandemic on our operational performance remains uncertain.
  • The timing of the pandemic.
  • The extent and duration of the pandemic.
  • The development and availability of effective treatments and vaccines, and the impact on the global economy and demand for OLED consumer products.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+2.4%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+1.4%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+23.0%

Q1 2017

Best reaction

-27.9%

Q3 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+10.6%+7.9%+5.7%
Q4 2025-11.2%-9.4%-19.1%
Q3 2025-7.7%-10.7%-10.4%
Q1 2025+1.8%+1.5%+1.5%
Q4 2024+6.8%+9.7%+0.8%
Q3 2024-15.7%-16.0%-23.1%
Q2 2024-22.6%-24.5%-13.0%
Q1 2024+11.9%+14.8%+15.1%
Q4 2023-6.5%-8.0%-9.6%
Q3 2023+7.3%+10.2%+28.6%
Q2 2023+12.7%+14.4%+17.0%
Q1 2023+3.0%+6.3%+13.1%
Q4 2022+7.3%+6.0%+14.0%
Q3 2022+7.0%+9.2%+19.6%
Q2 2022+3.7%-3.4%-11.8%
Q1 2022-4.7%-12.3%-11.6%
Q4 2021+20.1%+14.0%+24.1%
Q3 2021-5.7%-6.3%-21.8%
Q2 2021-9.7%-11.7%-9.7%
Q1 2021+0.6%-9.1%-2.2%
Q4 2020-6.2%-12.6%-4.2%
Q3 2020+4.2%+4.5%+17.9%
Q2 2020-1.9%-3.0%-9.6%
Q1 2020+2.7%+1.1%+12.6%
Q4 2019-2.6%-13.6%-36.3%
Q3 2019+14.4%+15.2%+11.0%
Q2 2019-2.6%-2.8%-2.7%
Q1 2019+8.3%+8.8%-6.6%
Q4 2018+22.5%+21.4%+29.7%
Q3 2018-16.2%-20.3%-25.3%
Q2 2018+12.6%+16.7%+21.7%
Q1 2018+11.3%+7.3%+8.4%
Q4 2017-16.2%-16.4%-32.4%
Q3 2017+10.8%+17.4%+23.8%
Q2 2017-2.1%-1.7%+5.7%
Q1 2017+23.0%+25.7%+29.4%
Q4 2016+13.7%+19.1%+17.1%
Q3 2016+5.3%+10.3%+5.9%
Q2 2016-10.2%-13.5%-20.2%
Q1 2016-0.9%
Q4 2015-12.8%
Q3 2015+11.1%
Q2 2015-9.9%
Q1 2015+11.2%
Q4 2014-3.3%
Q3 2014-7.4%
Q2 2014-2.4%
Q1 2014+16.4%
Q4 2013+1.3%
Q3 2013+22.1%
Q2 2013+11.3%
Q1 2013-16.9%
Q4 2009+10.5%
Q4 2012-0.9%
Q3 2012-27.9%
Q2 2012+15.2%
Q1 2012-9.6%
Q1 2011-9.6%
Q4 2011-2.0%
Q3 2010+5.1%
Q3 2011+5.1%
Q2 2011+19.5%
Q2 2010+19.5%
Q4 2010+19.5%
Q1 2010+14.3%

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