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Universal Display (OLED) to Post Q4 Earnings: What's in Store?

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Universal Display Corporation (OLED - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 18.

The Zacks Consensus Estimate for revenues is at $107 million, which suggests growth of 5.2% from the year-ago quarter’s levels.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 63 cents per share, unchanged in the past 30 days. The figure indicates a decline of 7.4% from the year-ago quarter’s reported figure.

Universal Display Corporation Price and EPS Surprise

 

Universal Display Corporation Price and EPS Surprise

Universal Display Corporation price-eps-surprise | Universal Display Corporation Quote

 

Factors Likely to Have Influenced Q4 Results

Universal Display’s fourth-quarter top-line performance is expected to have gained from ongoing momentum in customer orders and shipments of UniversalPHOLED. Also, higher demand for its green and red emitter products is likely to have contributed to the top line in the to-be-reported quarter.

Markedly, the Zacks Consensus Estimate for Material sales for the fourth quarter is currently pegged at $64 million, suggesting growth of 4.9% from the year-ago quarter’s reported figure.

Additionally, new OLED-based product launches from premium device makers like Apple, Lenovo, and Samsung as well as increasing uptake of OLED for TVs are anticipated to have driven order growth rate. This, in turn, is likely to get reflected in the company’s fourth-quarter performance.

Moreover, synergies from Adesis acquisition is expected to get reflected in fourth-quarter performance. Notably, Adesis had contributed $3.8 million to third-quarter 2020 top line.

The Zacks Consensus Estimate for revenues from Royalty and License Fees for the fourth quarter is currently pegged at $38.68 million, indicating growth of 2.3% from the year-ago quarter’s reported figure.

The consensus estimate for Contract Research Services revenues for the fourth quarter is at $3.49 million, suggesting an improvement of 9.7% from the year-ago quarter’s reported figure.

Nevertheless, sluggish demand in the premium smartphone market is likely to have affected top-line growth in the fourth quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Universal Display this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Universal Display has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are some stocks worth keeping a tab on, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.

CrowdStrike (CRWD - Free Report) has an Earnings ESP of +57.75% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Workday (WDAY - Free Report) has an Earnings ESP of +1.16% and a Zacks Rank #2.

HP Inc. (HPQ - Free Report) has an Earnings ESP of +2.45% and a Zacks Rank #2.

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