We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Universal Display Corporation (OLED - Free Report) reported solid fourth-quarter 2022 results, with the bottom and the top line beating the Zacks Consensus Estimate. Despite macroeconomic headwinds, the company's ongoing innovation efforts, investments in infrastructure development and capacity expansion have resulted in top-line growth year over year.
Net Income
Net income during the reported quarter was $65.1 million or $1.36 per share compared with $45.9 million or 96 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 43 cents. Lower operating expenses and top-line expansion led to growth in net income year over year.
For 2022, net income stood at $210.1 million or $4.40 per share compared with respective figures of $184.2 million or $3.87 per share in 2021.
Universal Display Corporation Price, Consensus and EPS Surprise
Revenues rose to $169 million, up 16% from $146.2 million in the year-ago quarter. The figure surpassed the consensus estimate of $150 million. Backed by the company’s robust patent portfolio and strong demand for AR/VR display applications, the renewal of license agreements on a long-term basis boosted OLED’s fourth-quarter revenues.
Backed by greater unit volume, revenues from the material sales segment aggregated $88.3 million compared with $85.8 million in the prior-year quarter. The royalty and license fees generated revenues of $75.6 million compared with $56 million in the prior-year quarter, led by higher volume and cumulative catch-up adjustment. The contract research services generated revenues of $5.1 million, up from $4.5 million in the prior-year quarter.
In 2022, total revenues stood at $616.6 million compared with $553.5 million in 2021.
Other Details
Gross profit in the fourth quarter was $138.9 million compared with $114 million in the prior-year period. Operating expenses decreased to $55.9 million from $57.5 million in the year-ago quarter. Operating income was $83.1 million compared with $56.5 million in the prior-year quarter, with an operating margin of 49% and 39%, respectively. Top-line growth and lower selling, general and administrative expenditures led to higher operating income year over year.
Cash Flow & Liquidity
In 2022, Universal Display generated $126.8 million from operating activities compared with $191.1 million in the prior-year period. As of Dec 31, 2022, the company had $93.4 million in cash and cash equivalents and $59.8 in retirement plan benefit liability compared with respective tallies of $312 million and $66.8 million in the prior-year period.
Outlook
For 2023, management estimates revenues to be in the range of $550-$600 million. OLED remains cautious as it anticipates that macroeconomic weakness in the global economy is likely to persist and that a variety of factors could impact the outcomes. The gross margin is expected to be in the band of 77-78%. Operating expenditures are expected to increase by 5% to 10% year over year and operating margins are estimated to be between 35-40%.
Fabrinet (FN - Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 5.05%, on average, in in the trailing four quarters. Earnings estimates for FN for the current year stands at $7.71 per share.
Fabrinet provides precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and sub-systems, industrial lasers and sensors.
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 14.17%, on average, in the trailing four quarters. Earnings estimates for ANET for the current year stand at $5.76 per share.
Arista Networks, Inc. is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.
Splunk Inc. , carrying a Zacks Rank #2, delivered an earnings surprise of 222%, on average, in the trailing four quarters. It has an Earnings ESP of +0.39%.
Splunk Inc. provides software solutions that enable enterprises to gain real-time operational intelligence by harnessing the value of their data. The company’s offerings enable users to investigate, monitor, analyze and act on machine data and big data, irrespective of format or source and help in operational decision-making.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Universal Display (OLED) Beats Q4 Revenue & Earnings Estimates
Universal Display Corporation (OLED - Free Report) reported solid fourth-quarter 2022 results, with the bottom and the top line beating the Zacks Consensus Estimate. Despite macroeconomic headwinds, the company's ongoing innovation efforts, investments in infrastructure development and capacity expansion have resulted in top-line growth year over year.
Net Income
Net income during the reported quarter was $65.1 million or $1.36 per share compared with $45.9 million or 96 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 43 cents. Lower operating expenses and top-line expansion led to growth in net income year over year.
For 2022, net income stood at $210.1 million or $4.40 per share compared with respective figures of $184.2 million or $3.87 per share in 2021.
Universal Display Corporation Price, Consensus and EPS Surprise
Universal Display Corporation price-consensus-eps-surprise-chart | Universal Display Corporation Quote
Revenues
Revenues rose to $169 million, up 16% from $146.2 million in the year-ago quarter. The figure surpassed the consensus estimate of $150 million. Backed by the company’s robust patent portfolio and strong demand for AR/VR display applications, the renewal of license agreements on a long-term basis boosted OLED’s fourth-quarter revenues.
Backed by greater unit volume, revenues from the material sales segment aggregated $88.3 million compared with $85.8 million in the prior-year quarter. The royalty and license fees generated revenues of $75.6 million compared with $56 million in the prior-year quarter, led by higher volume and cumulative catch-up adjustment. The contract research services generated revenues of $5.1 million, up from $4.5 million in the prior-year quarter.
In 2022, total revenues stood at $616.6 million compared with $553.5 million in 2021.
Other Details
Gross profit in the fourth quarter was $138.9 million compared with $114 million in the prior-year period. Operating expenses decreased to $55.9 million from $57.5 million in the year-ago quarter. Operating income was $83.1 million compared with $56.5 million in the prior-year quarter, with an operating margin of 49% and 39%, respectively. Top-line growth and lower selling, general and administrative expenditures led to higher operating income year over year.
Cash Flow & Liquidity
In 2022, Universal Display generated $126.8 million from operating activities compared with $191.1 million in the prior-year period. As of Dec 31, 2022, the company had $93.4 million in cash and cash equivalents and $59.8 in retirement plan benefit liability compared with respective tallies of $312 million and $66.8 million in the prior-year period.
Outlook
For 2023, management estimates revenues to be in the range of $550-$600 million. OLED remains cautious as it anticipates that macroeconomic weakness in the global economy is likely to persist and that a variety of factors could impact the outcomes. The gross margin is expected to be in the band of 77-78%. Operating expenditures are expected to increase by 5% to 10% year over year and operating margins are estimated to be between 35-40%.
Zacks Rank & Stocks to Consider
Universal Display currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fabrinet (FN - Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 5.05%, on average, in in the trailing four quarters. Earnings estimates for FN for the current year stands at $7.71 per share.
Fabrinet provides precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and sub-systems, industrial lasers and sensors.
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 14.17%, on average, in the trailing four quarters. Earnings estimates for ANET for the current year stand at $5.76 per share.
Arista Networks, Inc. is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.
Splunk Inc. , carrying a Zacks Rank #2, delivered an earnings surprise of 222%, on average, in the trailing four quarters. It has an Earnings ESP of +0.39%.
Splunk Inc. provides software solutions that enable enterprises to gain real-time operational intelligence by harnessing the value of their data. The company’s offerings enable users to investigate, monitor, analyze and act on machine data and big data, irrespective of format or source and help in operational decision-making.