Published on 23 Feb 2024 on Zacks via Yahoo Finance

Universal Display (OLED) Q4 Earnings Beat, Top Line Falls Y/Y

Universal Display Corporation OLED reported mixed fourth-quarter 2023 results, with the bottom line beating the Zacks Consensus Estimate but the top line missing the same. The company reported a top-line contraction year over year due to declining trends in several verticals. Constrained consumer spending in the smartphone and premium TV markets impacted net sales. However, the growing demand for OLED displays in a wide range of use cases, such as automotive, AR, VR wearables, gaming, foldable smartphones and signage, is a positive factor. The rising sales volume of emitter material is a tailwind.

Net Income

Net income in the fourth quarter was $62 million or $1.29 per share compared with $65.1 million or $1.36 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 11 cents. The decline is primarily attributed to increasing operating expenses and lower net sales.In 2023, the company reported a net income of $203 million or $4.24 per share compared with $210.1 million or $4.40 per share in 2022.