Universal Display Corporation Just Beat EPS By 21%: Here's What Analysts Think Will Happen Next

Universal Display Corporation (NASDAQ:OLED) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of US$172m, some 6.8% above estimates, and statutory earnings per share (EPS) coming in at US$1.41, 21% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Universal Display after the latest results.

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Taking into account the latest results, Universal Display's nine analysts currently expect revenues in 2025 to be US$674.2m, approximately in line with the last 12 months. Statutory per share are forecast to be US$5.18, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$671.4m and earnings per share (EPS) of US$5.03 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for Universal Display

There's been no major changes to the consensus price target of US$182, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Universal Display, with the most bullish analyst valuing it at US$220 and the most bearish at US$160 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Universal Display's past performance and to peers in the same industry. We would highlight that Universal Display's revenue growth is expected to slow, with the forecast 3.7% annualised growth rate until the end of 2025 being well below the historical 8.8% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 17% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Universal Display.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Universal Display's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Universal Display's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$182, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Universal Display going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Universal Display Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.