What to Expect from Universal Display

Seth Jayson, The Motley Fool
Updated

Universal Display (NAS: PANL) is expected to report Q3 earnings on Nov. 7. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Universal Display's revenues will drop -11.8% and EPS will compress -41.7%.

The average estimate for revenue is $19.2 million. On the bottom line, the average EPS estimate is $0.07.


Revenue details
 Last quarter, Universal Display chalked up revenue of $30.0 million. GAAP reported sales were much higher than the prior-year quarter's $11.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, EPS came in at $0.23. GAAP EPS were $0.23 for Q2 against -$0.03 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 60.4%, 3,000 basis points better than the prior-year quarter. Operating margin was 43.1%, 5,260 basis points better than the prior-year quarter. Net margin was 36.6%, 720 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $99.8 million. The average EPS estimate is $0.66.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,213 members out of 1,285 rating the stock outperform, and 72 members rating it underperform. Among 300 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 276 give Universal Display a green thumbs-up, and 24 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Universal Display is outperform, with an average price target of $46.50.

The article What to Expect from Universal Display originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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