Universal Display (OLED) Stock Trades Up, Here Is Why

Anthony Lee /
2023/05/04 10:14 am EDT

What Happened:

Shares of OLED provider Universal Display (NASDAQ:OLED) jumped 5.97% in the after-market session after the company reported first-quarter results that missed analysts' revenue expectations. However, earnings per share came in above Consensus estimates, and free cash flow was positive which is good news given the cash burn recorded in the previous quarter. In addition, inventory levels improved and the company announced acquisition of Merck KGaA, Darmstadt, Germany's phosphorescent emitter patent portfolio. Zooming out, OLED reaffirmed their 2023 outlook, which is comforting in light of macro uncertainty. It was a mixed but overall positive quarter for the company.

What is the market telling us:

Universal Display's shares are somewhat volatile and over the last year have had 24 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Universal Display is up 28% since the beginning of the year, but at $137.19 per share it is still trading 11.6% below its 52-week high of $155.13 from March 2023. Investors who bought $1,000 worth of Universal Display's shares 5 years ago would now be looking at an investment worth $1,340.

Is now the time to buy Universal Display? Access our full analysis of the earnings results here, it's free.