Universal Display To Shed Light On Q4
The provider of technology and materials for OLED displays and lighting is set to announce Q4 results after the close Thursday. Analysts expect Universal Display to earn 82 cents a share, up 49%, on sales of $98 million, up 31%. A big overhang on the company was removed when Universal Display announced new long-term supply and license agreements with major customer Samsung on Feb. 14.
and other info…
Universal Display announced the signing of long-term OLED material supply and license agreements with Samsung Display. Under the agreements, Universal Display will continue to supply its proprietary UniversalPHOLED phosphorescent organic light-emitting diode materials and technology to Samsung for use in Samsung’s OLED displays, including smartphone screens.
Universal Display shares jumped 8.9% to close at 159.15 on the stock market today. The stock hit a record high of 209 on Jan. 19 before getting hammered by the market correction and concerns about slowing sales for Apple’s (AAPL) OLED-screen iPhone X. Samsung supplies the OLED displays for the iPhone X.
“We believe Samsung’s willingness to license for 5 years reaffirms UDC’s proprietary OLED materials and technology and refutes the bear thesis that key IP (intellectual property) is expiring over the next 1-2 years,” Muse said. “Add it all up and this announcement is a significant positive for UDC.”
Muse reiterated his outperform rating on Universal Display stock with a price target of 225.
5+2 year deal with Samsung is very nice.
But then this…https://www.investors.com/news/technology/universal-display-…
(OLED) stock skidded on Friday over a report that Samsung, its largest customer, is dealing with an oversupply of OLED display panels after client Apple (AAPL) slashed production of its iPhone X handset.
Samsung is “saddled with excess production capacity” after having ramped up its factories to meet the expected demand from Apple, the Japanese publication said. “Other smartphone makers, who Samsung had hoped would incorporate OLED panels, have been slow to make the transition due to their expense and are sticking to liquid crystal displays.”
Samsung’s OLED panel factory utilization rate is around 50% to 60%, according to the Display Supply Chain Consultants of the U.S., Nikkei said.
If you look at the chart, the volume for the big up day on the 2/14 announcement was way bigger than the volume on the 2/16 down day. That is good.