Here's What Analysts Are Forecasting For Universal Display Corporation (NASDAQ:OLED) After Its Full-Year Results
Universal Display Corporation (NASDAQ:OLED) shareholders are probably feeling a little disappointed, since its shares fell 5.4% to US$172 in the week after its latest yearly results. Universal Display reported US$576m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$4.24 beat expectations, being 2.6% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Universal Display
Taking into account the latest results, the current consensus from Universal Display's ten analysts is for revenues of US$661.1m in 2024. This would reflect a decent 15% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 6.3% to US$4.55. Before this earnings report, the analysts had been forecasting revenues of US$667.5m and earnings per share (EPS) of US$4.62 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$196, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Universal Display, with the most bullish analyst valuing it at US$260 and the most bearish at US$165 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Universal Display'shistorical trends, as the 15% annualised revenue growth to the end of 2024 is roughly in line with the 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. It's clear that while Universal Display's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$196, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Universal Display. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Universal Display analysts - going out to 2026, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Universal Display that you need to take into consideration.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
