Universal Display Corporation (NASDAQ:OLED)
Universal Display Corporation (NASDAQ:OLED) shares dipped 5% ($67.45) during the regular session but have spiked over 12% ($76) in the after-market on their earnings release which featured the company’s first-ever dividend announcement. The company reported Q4 2016 profit of $25.8 million. On a per-share basis, the Ewing, NJ-based company reported net income of $0.55 and revenues of $74.6 million for Q4 2016. Universal Display Corporation (NASDAQ:OLED)expects full-year revenue in the range of $230 million to $250 million.
OLED is an acronym for “organic light-emitting diode” and they are supposed to be the biggest thing in display technology for the last ten years. OLEDs create color by running electricity through materials that glow red, green, and blue – the only colors you need to create every other color in the spectrum. Pixels will start off as white but can be completely shut off which means that black will now be very black. The technology will allow televisions, or any method of display, to be lighter and thinner – and more clear. For now, the TVs using OLED technology are pricey – five figures.
Universal Display Corporation (NASDAQ:OLED) pioneered the OLED technology and holds over 4,000 patents. Industry experts believe that the company will grow revenues at 10%/quarter but a development may make that number look small. Rumors are floating that Apple ois considering OLED technology for use in its iPhone. Breaking into the mobile market with Apple would certainly shake up the shares and send analysts scrambling to recalculate future earnings.
Shares of Universal Display Corporation (NASDAQ:OLED) hit their all-times highs in the after-market as the market absorbed their earnings numbers. For a $3 billion company a $0.03 dividend may not seem like a big deal. However as we have seen with technology, as the manufacturing process begins to take advantage of economies of scale, revenues should increase with the technology’s broader adoption. And if Apple includes it in their iPhone you will be able to hear the champagne bottles popping in New Jersey all the way from Silicon Valley.
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: Steve Clark is a 23 year Wall St professional with stints in M&A, risk management, and algorithm trading.