OLED Q1 Earnings Call: Blue Milestone, Tariff Impacts, and Revenue Outlook Discussed

OLED provider Universal Display (NASDAQ:OLED) reported Q1 CY2025 results topping the market's revenue expectations , but sales were flat year on year at $166.3 million. The company expects the full year's revenue to be around $670 million, close to analysts' estimates. Its non-GAAP profit of $1.35 per share was 20.2% above analysts' consensus estimates.
Is now the time to buy OLED? Find out in our full research report (it's free).
Revenue: $166.3 million vs analyst estimates of $155.6 million (flat year on year, 6.8% beat)
Adjusted EPS: $1.35 vs analyst estimates of $1.12 (20.2% beat)
Adjusted EBITDA: $80.76 million vs analyst estimates of $71.93 million (48.6% margin, 12.3% beat)
The company reconfirmed its revenue guidance for the full year of $670 million at the midpoint
Operating Margin: 41.9%, up from 38% in the same quarter last year
Free Cash Flow Margin: 10.5%, down from 39.3% in the same quarter last year
Inventory Days Outstanding: 447, up from 422 in the previous quarter
Market Capitalization: $7.28 billion
Universal Display's first quarter results were driven by steady licensing revenue and ongoing demand for its OLED (organic light-emitting diode) materials, particularly in IT and smartphone applications. Management cited a recent uptick in orders, which they believe was influenced by customers responding to new tariff developments. CEO Steve Abramson described recent progress with blue phosphorescent OLED technology—highlighted by LG Display's announcement of successful commercialization—as a notable step for the company and its customers.
Looking forward, Universal Display maintained its revenue guidance for the year, noting that market dynamics remain unpredictable due to global trade tensions and the timing of new technology adoption. CFO Brian Millard stated, 'We continue to believe our revenues will be in the range of $640 million to $700 million,' and emphasized the company's focus on innovation and supply chain resilience as key to navigating volatility in the near term.
Universal Display's management attributed the flat year-on-year revenue in Q1 to balancing steady licensing income with shifts in material sales. The company's commentary focused on several pivotal developments in OLED technology, supply chain, and customer trends that shaped the quarter and set the stage for future growth.
Blue OLED Commercialization Milestone: LG Display's public announcement of successful commercial-level performance using Universal Display's blue phosphorescent material was described as a significant development. Management stressed that blue OLED is critical for improving energy efficiency and enabling broader adoption across smartphones and IT devices.
Material Sales Mix: The quarter saw reduced green emitter sales offset by stable red emitter sales, reflecting variable customer purchasing patterns. Management noted that adoption timing and customer inventory management continued to impact quarterly material sales.
Tariff-Driven Order Timing: An uptick in orders was observed in April, which management linked to customers anticipating new or increased tariffs. This trend was viewed as likely pulling forward some demand that may have otherwise occurred later in the year.
Tandem Architecture Trends: The company highlighted the growing use of tandem OLED structures—where two emissive layers are stacked—to improve device lifetime, especially in IT products like tablets and monitors. However, the adoption in smartphones remains limited.
Supply Chain and Manufacturing Diversification: Universal Display pointed to its expanded manufacturing footprint, including a new facility in Ireland, as a strategic move to ensure flexibility and resilience amid global supply chain uncertainties.
Management's outlook for the remainder of the year centers on technology milestones, customer adoption of new OLED architectures, and the unpredictability surrounding global trade and tariffs.
Blue OLED Adoption: The pace at which customers, especially large panel makers, integrate blue phosphorescent OLED into commercial products will be a key determinant of revenue growth and margin expansion.
Tariff and Trade Environment: Ongoing changes in tariff policy could accelerate or delay customer orders, impacting revenue timing and possibly creating volatility in quarterly results.
Product Roadmap Expansion: The company's push into new applications—including automotive and advanced IT devices—may broaden its addressable market, but actual uptake will depend on customer product launches and consumer demand.
Tyler Bisset (Goldman Sachs): Asked how LG Display's blue OLED milestone affects adoption timelines and pricing. Management said product launch timing is up to customers and that pricing discussions are ongoing.
James Ricchiuti (Needham & Company): Sought clarification on the commercial viability of pure phosphorescent blue solutions. Management explained that customer approaches vary and emphasized the efficiency benefits of phosphorescent materials.
Mehdi Hosseini (SIG): Questioned whether the current blue implementation is a bridge to wider adoption. Management noted the tandem structure is mainly for high-end devices, with broader rollout dependent on further advancements.
Scott Searle (ROTH Capital Partners): Asked about the impact of tariffs on order timing. Management confirmed increased orders in April were likely due to tariff concerns, but full-year guidance remains unchanged.
Nam Kim (Arete Research): Inquired about the use of Universal Display's blue host materials and the relevance of tandem versus single-layer structures. Management declined to discuss specific customer recipes but confirmed ongoing development in both areas.
Looking ahead, the StockStory team will be monitoring (1) the pace and breadth of blue phosphorescent OLED adoption across major customer product lines, (2) any further shifts in customer order patterns tied to evolving tariff and trade policies, and (3) developments in tandem and single-layer OLED architectures, particularly in IT and smartphone markets. Progress in these areas will be central to Universal Display's growth trajectory.
Universal Display currently trades at a forward EV-to-EBITDA ratio of 33.1×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our free research report.
Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Yahoo

an hour ago

• Yahoo

AeroVironment (AVAV) Reports Earnings Tomorrow: What To Expect

Aerospace and defense company AeroVironment (NASDAQ:AVAV) will be announcing earnings results this Tuesday afternoon. Here's what investors should know. AeroVironment missed analysts' revenue expectations by 10.9% last quarter, reporting revenues of $167.6 million, down 10.2% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts' expectations significantly and full-year EBITDA guidance missing analysts' expectations significantly. Is AeroVironment a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting AeroVironment's revenue to grow 23.7% year on year to $243.7 million, improving from the 5.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.41 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AeroVironment has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 5.6% on average. Looking at AeroVironment's peers in the aerospace and defense segment, some have already reported their Q1 results, giving us a hint as to what we can expect. HEICO delivered year-on-year revenue growth of 14.9%, beating analysts' expectations by 3.5%, and Redwire reported a revenue decline of 30.1%, falling short of estimates by 16.5%. HEICO traded up 7.4% following the results while Redwire's stock price was unchanged. Read our full analysis of HEICO's results here and Redwire's results here. Investors in the aerospace and defense segment have had steady hands going into earnings, with share prices flat over the last month. AeroVironment is up 7.2% during the same time and is heading into earnings with an average analyst price target of $195.38 (compared to the current share price of $190.94). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.

The Hill

4 hours ago

• The Hill

Oil rises and US stock futures slip as markets react to US strike on Iran nuclear sites

NEW YORK (AP) — The price of oil rose and U.S. stock futures fell as global markets react to the U.S. strike against nuclear targets in Iran. The price of Brent crude oil, the international standard, rose 2.6% to $79 a barrel. U.S. crude rose 2.6% to $75.76 a barrel. On Saturday, U.S. forces attacked three Iranian nuclear and military sites, further increasing the stakes in the war between Israel and Iran. Futures for the S&P 500 and the Dow Jones Industrial Average slipped 0.3%, while Nasdaq futures fell 0.5%. Treasury yields were little changed. The modest moves indicate markets are taking the latest development in stride. The conflict, which began with an Israeli attack against Iran on June 13, has sent oil prices yo-yoing, which has in turn caused see-saw moves for the U.S. stock market, because of rising and ebbing fears that the war could disrupt the global flow of crude. Iran is a major producer of oil and also sits on the narrow Strait of Hormuz, through which much of the world's crude passes. An Iran retaliation that included closing off the waterway would be technically difficult to pull off but traders are afraid Iran could severely disrupt transit through it, sending insurance rates spiking and making shippers nervous to move without U.S. Navy escorts Some analysts think Iran is unlikely to close down the waterway because the country uses it to transport its own crude, mostly to China, and oil is a major source of revenue for the regime. 'It's a scorched earth possibility, a Sherman-burning-Atlanta move,' said Tom Kloza, chief market analyst at Turner Mason & Co. 'It's not probable.' Kloza thinks oil futures will ease back down after initial fears blow over. Ed Yardeni, a long-time analyst, agreed, writing in a report that Tehran leaders would likely hold back. 'They aren't crazy,' he wrote in a note to investors Sunday. 'The price of oil should fall and stock markets around the world should climb higher.' Other experts aren't so sure. Andy Lipow, a Houston analyst covering oil markets for 45 years, said countries are not always rational actors and that he wouldn't be surprised if Tehran lashed out for political or emotional reasons. 'If the Strait of Hormuz was completely shut down, oil prices would rise to $120 to $130 a barrel,' said Lipow, predicting that that would translate to about $4.50 a gallon at the pump and hurt consumers in other ways. 'It would mean higher prices for all those goods transported by truck, and it would be more difficult for the Fed to lower interest rates.'

Business Insider

5 hours ago

• Business Insider

Stifel Nicolaus Sticks to Their Buy Rating for Alkermes (ALKS)

In a report released today, Paul Matteis from Stifel Nicolaus maintained a Buy rating on Alkermes (ALKS – Research Report), with a price target of $42.00. The company's shares closed last Friday at $29.09. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Matteis is a 3-star analyst with an average return of 1.2% and a 41.20% success rate. Matteis covers the Healthcare sector, focusing on stocks such as Alkermes, Neurocrine, and uniQure. In addition to Stifel Nicolaus, Alkermes also received a Buy from UBS's Ashwani Verma in a report issued on June 17. However, on June 10, RBC Capital maintained a Hold rating on Alkermes (NASDAQ: ALKS).