Universal Display’s Q3 earnings miss sends shares tumbling 10%
Universal Display, a leading OLED technology company, has reported disappointing third-quarter results. Sales and earnings missed estimates, leading to a 10% drop in stock market price. CEO Steven Abramson reduced full-year sales guidance.
Sales for the quarter were $139.8 million, falling short of the $165.8 million forecast. This represents a 14% year-over-year decline, driven by customer pull-ins and a one-time adjustment. Earnings per share were $0.92, missing the expected $1.17.
Earnings declined by 34% year over year, with gross margin and operating margins also contracting. The company's stock, trading under the symbol OLED, fell 10% following the news. Despite this, earnings for the last 12 months remain at $4.64, keeping Universal Display roughly on track for break-even earnings against 2024.
Universal Display's stock is currently valued at nearly 27 times earnings, with little growth potential and the risk of further earnings decline. CEO Steven Abramson insists the company can capture growth, but sales might not increase significantly in 2025 compared to last year's $647.7 million.
