Universal Display Shares Soar 22% As Q2 Results Top Estimates, Backs Outlook

(RTTNews) - Shares of Universal Display Corp. (OLED) soared nearly 22 percent in extended trading on Thursday after the lighting technology company reported results for the second quarter that topped analysts' expectations.

The company also reported a profit for the quarter that grew 40 percent from last year, reflecting strong double-digit revenue growth. The company backed its revenue guidance for the full-year 2013, but now expects revenues at the high end of the range.

Universal Display announced a change in its stock ticker symbol to OLED from PANL at its annual shareholder meeting on June 20, 2013 in order to align its strong brand identity and public persona with the OLED name. It began trading under the new stock symbol 'OLED' on the NASDAQ on June 24.

"We are pleased to report strong second quarter growth, leading to record quarterly revenues and earnings. Given the rate at which the market is adopting our energy efficient, high-performance UniversalPHOLED materials and technology, we believe the market has achieved a level of sustainable commercial technology adoption that can drive strong top line growth," CFO Sidney Rosenblatt said in a statement.

The Ewing, New Jersey-based LED technologies company reported net income of $15.4 million or $0.33 per share for the second quarter, higher than $11.0 million or $0.23 per share in the prior-year quarter.

On average, fourteen analysts polled by Thomson Reuters expected the company to report earnings of $0.27 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter surged 65 percent to $49.36 million from $29.99 million in the same quarter last year, and topped thirteen Wall Street analysts' consensus estimate of $37.95 million.

The strong double-digit sales growth was attributable to a 111 percent increase in material sales, which rose to $27.1 million, up from $12.8 million in the year-ago quarter, reflecting strong volume growth.

Royalty and license fees also increased 37 percent to $15.4 million from last year, and licensing revenues related to an agreement with Samsung Display Corp., was $20 million, up from $15 million last year. Universal Display's OLED screens currently feature in Samsung's flagship Galaxy S, S II and S III smartphones.

Operating income for the quarter surged 68 percent to $21.7 million from last year's $12.9 million. Operating expenses for the quarter increased to $27.6 million from $17.1 million in the same quarter of 2012, reflecting a substantial increase in patent and amortization of acquired technology expenses.

Looking ahead to fiscal 2013, the company now anticipates revenues at the high end of its prior guidance range of $110 million to $125 million. Street is currently looking for full-year 2013 revenues of $118.77 million.

"With our proprietary materials and technology generating attractive margins, and a continued focus on lean and efficient operations, we are leveraging the success we are achieving with our products in the market into strong earnings growth for our shareholders," Rosenblatt added.

OLED closed Thursday's regular trading session at $29.37, up $1.08 or 3.82% on a volume of 0.79 million shares. The stock soared a further $6.33 or 21.55% in after-hours trading.