Universal Display's first quarter performance was shaped by steady demand across its OLED materials business, with management highlighting a notable uptick in orders in April that they attributed to customer actions around potential tariff impacts. While revenue remained flat year over year, CEO Steve Abramson credited recent advances in blue phosphorescent OLED materials and the ongoing diversification of the supply chain as key factors supporting resilience in a dynamic market environment. Abramson remarked, “We built this company to be resilient and have shown time and again that we can navigate through challenging times.”
Is now the time to buy OLED? Find out in our full research report (it’s free).
Universal Display (OLED) Q1 CY2025 Highlights:
- 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
- Inventory Days Outstanding: 447, up from 422 in the previous quarter
- Market Capitalization: $7.42 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Universal Display’s Q1 Earnings Call
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Tyler Bisset (Goldman Sachs) asked about the timeline and milestones for blue OLED commercialization following LG Display’s announcement. CEO Steve Abramson emphasized that timing of product launches is determined by customers, but called the announcement a positive step.
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James Ricchiuti (Needham & Company) inquired about industry progress toward pure phosphorescent blue solutions and material stability. CFO Brian Millard explained that different customers are pursuing varied architectures, with energy efficiency being a key differentiator for phosphorescent materials.
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Mehdi Hosseini (SIG) probed whether the current blue OLED implementations are a bridge to broader adoption or will be limited to premium devices. Millard responded that structures using both fluorescent and phosphorescent layers may see initial use in high-end products, with wider adoption depending on further technical progress.
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Scott Searle (ROTH Capital Partners) questioned the magnitude of tariff-related order activity and its impact on future quarters. Millard clarified that while April saw heightened orders, it is too early to estimate the full-year impact, and guidance remains unchanged.
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Nam Kim (Arete Research) asked about the use of Universal Display’s blue host materials and potential differences between tandem and single-layer OLED structures. Abramson said specifics depend on customer development projects, with both approaches under evaluation across the industry.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be watching (1) the pace of adoption and commercial launches of blue phosphorescent OLED panels by major customers, (2) any sustained changes in customer ordering behavior related to tariffs or global trade developments, and (3) growth in demand from IT, automotive, and foldable device markets. Continued progress in supply chain resilience and product innovation will also be important indicators of execution against management’s strategy.
Universal Display currently trades at $158, up from $140.95 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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