Universal Display (OLED) Q2 2024 earnings results miss EPS expectations

Universal Display (OLED) announced its Q2 2024 earnings results today. The company missed EPS and revenue expectations.

Universal Display (OLED) released its Q2 2024 earnings results on August 1, 2024. Prior to the release of the figures, the expectations were pegged at an EPS of $1.14/share with a whisper number of $1.25/share. Meanwhile, revenue was anticipated to hit $159 million. Unfortunately, Universal Display missed all of this, with EPS hitting $1.10/share and revenue sitting at $158.5 million.

Despite missing expectations, the company managed to earn more than it did for its Q2 2023 period, where revenue was $146.6 million. The company noted a few other highlights from this quarter:

Revenue from material sales was $95.4 million in the second quarter of 2024 as compared to $77.1 million in the second quarter of 2023. The increase in material sales was primarily due to strengthened demand for our emitter materials.
Revenue from royalty and license fees was $59.6 million in the second quarter of 2024 as compared to $64.4 million in the second quarter of 2023. The decrease in royalty and license fees was primarily the result of changes in customer mix between periods, partially offset by increased sales volume.
Cost of material sales was $35.5 million in the second quarter of 2024 as compared to $28.6 million in the second quarter of 2023. The increase in cost of material sales was primarily due to an increase in the level of materials sales.
Total gross margin was 76% in the second quarter of 2024 as compared to 78% in the second quarter of 2023. The decrease was primarily due to changes in customer and product mix.
Operating income was $56.4 million in the second quarter of 2024 as compared to $58.6 million in the second quarter of 2023.
The effective income tax rate was 19.3% and 22.4% in the second quarter of 2024 and 2023, respectively.
Net income was $52.3 million or $1.10 per diluted share in the second quarter of 2024 as compared to $49.7 million or $1.04 per diluted share in the second quarter of 2023.

Though Universal Display missed expectations this quarter, Brian Millard, Vice President and Chief Financial Officer of Universal Display Corporation, issued a statement in which he noted a “broadening proliferation of OLEDs” and that the company is “enhancing our operational and strategic infrastructure and fortifying our leadership position in the ecosystem.” For more earnings results from this quarter, check out our Q2 2024 earnings results page.