OLED Beats On Q1 Earnings, Issues Robust FY21 Guidance

Universal Display Corp OLED reported first-quarter FY21 revenue growth of 19.3% year-on-year to $134 million, beating the analyst consensus of $119.96 million.
Revenue from material sales rose 19.9% Y/Y to $79.8 million, Royalty and license fees revenue increased 18.1% Y/Y to $50.9 million, and Contract research services revenue rose 26$ Y/Y to $3.3 million.
Operating income rose 42.9% Y/Y to $63.6 million, with the margin expanding 780 bps Y/Y to 47.43%.
Net income rose 35.3% Y/Y to $51.7 million, with EPS of $1.08 beating the analyst consensus of $0.79.
Universal Display held $726.3 million in cash and equivalents and generated $29.5 million in operating cash flow.
It announced a Q2 dividend of $0.20 per share payable on June 30, 2021.
Guidance: OLED sees an FY21 revenue outlook of $530 million - $560 million, compared to the analyst consensus of $556.11 million.
Universal Display extended OLED Technology License and Material Purchase Agreements with LG Display Co Ltd LPL and Visionox, and was jointly establishing a new manufacturing site in Shannon, Ireland with PPG Industries Inc PPG for the production of UniversalPHOLED materials, since the last earnings call, CFO, Sidney D. Rosenblatt said.
The company has invested $700 million in R&D to advance from a start-up to a leading player in the global OLED ecosystem, Rosenblatt added.
Price action: OLED shares are up by 0.23% at $218.74 on the last check Friday.

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