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Investing.com -- Universal Display Corporation (NASDAQ:OLED) reported third-quarter results that fell well short of analyst expectations, sending shares tumbling 14.8% in after-hours trading on Thursday. The company, which provides technology and materials for OLED displays, posted revenue of $139.6 million, significantly below the consensus estimate of $163.88 million, while earnings per share came in at $0.92, missing analyst expectations of $1.19.
The quarterly revenue represented a 13.6% decline compared to the $161.6 million reported in the same period last year. The company attributed the disappointing results to timing shifts, including customer pull-ins earlier in the year and a one-time out-of-period adjustment of $9.5 million that particularly affected royalty and license fees, which dropped to $53.3 million from $74.6 million in the prior-year quarter.
"We continue to be energized by the opportunities ahead for the OLED industry and the unfolding IT and automotive capex cycle," said Brian Millard, Chief Financial Officer and Treasurer of Universal Display . "Third-quarter results reflect timing shifts, including customer pull-ins earlier in the year and a one-time out-of-period adjustment."
Material sales remained relatively stable at $82.6 million compared to $83.4 million in the third quarter of 2024. However, operating income fell sharply to $43.1 million from $67.0 million in the year-ago period.
In response to the weaker-than-expected performance, Universal Display revised its full-year 2025 guidance, stating that revenue will likely be around the lower end of its previous range of $650 million to $700 million.
The company also announced a quarterly dividend of $0.45 per share, payable on December 31, 2025, to shareholders of record as of December 17, 2025.
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