Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in flat panel displays and solid-state lighting applications.
OLED uses an organic substance that glows when an electric current is introduced. The material reduces the thickness and weight of the devices, creating an ultra-thin, sleek form and superior color reproduction.
On Monday OLED was downgraded by Susquehanna Financial Group’s analyst Mehdi Hosseini. Hosseini argued that “the best case (cash) earnings scenario (of high single digit $/share) is now dialed into the share price” following the big run-up.” The big run up he is preferring to is the stock price to that point was up 75% year to date.
Universal Display announced first-quarter 2019 results on Thursday after the market closed. First-quarter 2019 net income was $31.5 million or 66 cents / share compared to $6 million or 13 cents / share in the first quarter of 2018. Total revenue in first-quarter 2019 was $87.8 million vs. $43.6 million in first-quarter 2018. Universal Display also increased its 2019 guidance for revenue in the range of $345 million to $365 million, up from its old outlook for a range of $325 million to $350 million.
CFO Sidney Rosenblatt called the quarter “solid,” adding:
Looking to the year, we continue to see strong momentum in the industry. As seen by leading OEM product launches, OLEDs are the display technology of choice for premium smartphones and TVs. Additionally, one of the major themes emerging in the consumer electronics market is form factor. Driven by a robust pipeline of activity, from both panel makers and end users, we believe that the flexible, foldable display path will lead to a myriad of new products, designs, and applications.
Monthly Chart (Curve Timeframe) – monthly supply is at $190 and the monthly demand is at $85.
Weekly Chart (Trend Timeframe) – the trend is sideways.
Daily Chart (Entry) – price is at extremes at this time. If price can take out the $150 level, look for pull back to take price short.