Universal Display Corporation (NASDAQ: OLED) saw its shares fall by 18.6% in February, according to data provided by S&P Global Market Intelligence, after the company released disappointing revenue guidance for full-year 2018 that failed to match up with Wall Street's estimates.
Continue Reading Below
Universal Display had a strong fourth quarter of 2017 (reported Feb. 22), with total revenue jumping 55% year over year to $115.9 million. Revenue from the company's material sales skyrocketed 105% year over year to $59.8 million in the fourth quarter.
Additionally, sales from the company's important royalty and licensing business rose by 23% to $53.8 million, up from $43.6 million in the year-ago quarter.
Net income also rose to $0.69 per diluted share, up from $0.55 per share in the year-ago quarter. If you back out the effects of the Tax Cuts and Jobs Act, then net income was $0.93 per diluted share in the quarter, or $44.3 million.
But investors focused their attention on the fact that Universal Display's management set guidance for full-year 2018 revenue that fell below Wall Street's consensus estimate for the year. The company's management said that sales for 2018 would be in the range of $350 million to $380 million, which is significantly below analysts' consensus estimate of $398.2 million.
Investors have been a little more optimistic about the company this month, and have pushed Universal Display's shares up about 2.6% as of this writing. Despite management's light guidance for 2018, Universal Display CFO Sidney Rosenblatt said in a press release that high-volume OLED production should ramp up next year, and that "2019 is poised to be a meaningful year of growth."
10 stocks we like better than Universal DisplayWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Universal Display wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of March 5, 2018