On August 1, 2024, Universal Display Corp (OLED, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Universal Display Corp researches, develops, and manufactures organic light-emitting diode (OLED) technologies for various display applications, including mobile phones, tablets, televisions, and more. The company reported mixed results, with revenue slightly below analyst estimates but earnings per share (EPS) surpassing expectations.
Financial Performance and Challenges
Universal Display Corp (OLED, Financial) reported total revenue of $158.5 million for Q2 2024, a 8.1% increase from $146.6 million in Q2 2023. However, this figure fell short of the analyst estimate of $159.46 million. The company's net income for the quarter was $52.3 million, or $1.10 per diluted share, compared to $49.7 million, or $1.04 per diluted share, in the same period last year. This EPS figure fell short of the analyst estimate of $1.14.
The company faces challenges such as changes in customer mix and product mix, which impacted its gross margin, reducing it to 76% from 78% in the previous year. Additionally, the cost of material sales increased to $35.5 million from $28.6 million, primarily due to higher material sales levels.
Key Financial Achievements
Despite the challenges, Universal Display Corp (OLED, Financial) achieved significant milestones. Revenue from material sales surged to $95.4 million, up from $77.1 million in Q2 2023, driven by increased demand for emitter materials. However, revenue from royalty and license fees decreased to $59.6 million from $64.4 million, mainly due to changes in customer mix.
“We reported solid second quarter results as the OLED IT adoption cycle begins to gain momentum,” said Brian Millard, Vice President and Chief Financial Officer of Universal Display Corporation.
Income Statement Highlights
| ($ in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 |
|---|---|---|
| Material sales | $95,442 | $77,107 |
| Royalty and license fees | $59,551 | $64,399 |
| Contract research services | $3,512 | $5,059 |
| Total revenue | $158,505 | $146,565 |
Balance Sheet and Cash Flow Highlights
For the first half of 2024, Universal Display Corp (OLED, Financial) reported total revenue of $323.8 million, up from $277.0 million in the first half of 2023. Net income for the first half of 2024 was $109.2 million, or $2.29 per diluted share, compared to $89.5 million, or $1.87 per diluted share, in the first half of 2023. The company's effective income tax rate decreased to 19.3% from 22.6% in the previous year.
Revised Guidance and Dividend Announcement
Universal Display Corp (OLED, Financial) has revised its 2024 revenue guidance, now expecting revenue to be in the range of $645 million to $675 million. Additionally, the company announced a third-quarter cash dividend of $0.40 per share, payable on September 30, 2024, to shareholders of record as of September 16, 2024.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Universal Display Corp for further details.
