Universal Display Reports 7.3% Increase in Revenue for Q2 2023
August 8, 2023
☀️Earnings Overview
On August 3 2023, UNIVERSAL DISPLAY ($NASDAQ:OLED) announced its financial results for the second quarter ended June 30 2023. Total revenue for the quarter was reported at USD 146.6 million, representing a 7.3% increase from the same period in the previous year. Net income was also up 19.7%, totaling USD 49.7 million.
Analysis
GoodWhale conducted a financial analysis of UNIVERSAL DISPLAY, and the results showed that it had a very high health score of 10/10. This is an indication that UNIVERSAL DISPLAY is in a strong position to survive any crisis without the risk of bankruptcy, thanks to its solid cashflows and debt. In addition, UNIVERSAL DISPLAY has notable strengths in several categories, including asset, dividend, growth, and profitability. This further demonstrates the level of stability and success that the company has achieved. As a result, we have classified UNIVERSAL DISPLAY as a ‘gorilla’, which is a type of company that has managed to achieve stable and high revenue or earning growth due to its strong competitive advantage. Investors who are looking for a stable and reliable company should consider investing in UNIVERSAL DISPLAY. It has proven to be successful over the years and is highly likely to continue its trend of growth and profitability. Furthermore, with its strong competitive edge, it’s a great option for those looking for an edge over other investments. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Universal Display. More…
| Total Revenues | Net Income | Net Margin |
| 606.62 | 206.98 | 34.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Universal Display. More…
| Operations | Investing | Financing |
| 98.08 | -150.48 | -68.03 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Universal Display. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.54k | 202.09 | 28.28 |
Key Ratios Snapshot
Some of the financial key ratios for Universal Display are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 18.0% | 29.1% | 42.1% |
| FCF Margin | ROE | ROA |
| -3.5% | 12.1% | 10.4% |
Peers
Universal Display Corporation (UDC) is engaged in the development, commercialization and licensing of organic light emitting diode (OLED) technologies and materials for use in flat panel displays, solid-state lighting and other opto-electronic applications. The company has a dominant position in the OLED market, with its technology being used in over 90% of OLED panels manufactured globally.
However, it faces competition from a number of smaller players, including SDI Corporation, HC SemiTek Corporation and Advanced Optoelectronic Technology.
– Sdi Corp ($TWSE:2351)
Sdi Corp is a publicly traded company with a market capitalization of $18.21 billion as of 2022. The company has a return on equity of 13.87%. Sdi Corp is a provider of software and services. The company offers a range of software products, including enterprise resource planning (ERP), customer relationship management (CRM), and e-commerce software. The company also provides a range of services, such as implementation, training, and support.
– HC SemiTek Corp ($SZSE:300323)
SEMITEC Corporation is a Japanese semiconductor company. They are known for their development and manufacturing of semiconductor products, such as integrated circuits, transistors, and diodes. The company also offers other services, such as technical support and consultations. SEMITEC’s market cap as of 2022 was 8.36 billion dollars, and their ROE was 2.16%. The company is doing well overall, however their ROE could be higher.
– Advanced Optoelectronic Technology ($TWSE:3437)
Advanced Optoelectronic Technology is a publicly traded company that designs, manufactures, and sells optoelectronic products and services. The company has a market cap of 2.31B as of 2022 and a return on equity of 1.3%. Advanced Optoelectronic Technology’s products are used in a variety of applications including telecommunications, data communications, consumer electronics, and industrial lighting. The company’s optoelectronic products include semiconductor lasers, light emitting diodes (LEDs), and photodetectors.
Summary
Universal Display Corporation reported significant year-over-year revenue and net income growth for the second quarter of 2023. Total revenue increased by 7.3% to USD 146.6 million and net income rose 19.7% to USD 49.7 million compared to the same quarter in the prior year. The company’s growth was highlighted by strong gains in their OLED displays segment and their licensing and materials segment, which drove revenue and profits higher. Investors may find value in this stock due to its promising earnings growth and resilient business model.
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