Universal Display’s second quarter reflected stronger-than-expected demand, with management attributing growth to increased adoption of OLED technology across consumer electronics, automotive, and IT markets. CEO Steven Abramson highlighted that expanding product portfolios and rising use in tablets, laptops, and monitors were key contributors. Management also noted that recent industry events, such as Display Week, showcased how OLED innovation is driving new form factors, including foldable and rollable devices, further enhancing the company’s addressable market.

Is now the time to buy OLED? Find out in our full research report (it’s free).

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 From Universal Display’s Q2 Earnings Call

• James Andrew Ricchiuti (Needham & Company) asked about the incremental benefit from foldable phones versus traditional smartphones. CFO Brian Millard explained that foldables can use up to three times more material, offering a meaningful revenue opportunity.
• Ricchiuti (Needham & Company) followed up on blue emitter revenue for the quarter. Millard disclosed $1.1 million in blue revenues and $2.2 million year-to-date, reflecting early commercialization progress.
• Zhihua Yang (Oppenheimer & Company) inquired about the surge in contract research services revenue. Millard clarified this was driven by Adesis’s life sciences contracts, not related to the core OLED business.
• Yang (Oppenheimer & Company) also asked for examples of AI and machine learning in R&D. CEO Steven Abramson detailed how AI/ML speeds up material discovery by identifying promising development pathways in the company’s extensive OLED database.
• Scott Wallace Searle (ROTH Capital Partners) questioned the impact of new tandem architecture and capacity expansion in IT and automotive OLED. Millard confirmed tandem is mostly used in newer, premium segments and that Gen 8.6 fabs will contribute to a 10-15% increase in installed capacity by 2025.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will monitor (1) the commercial rollout of blue phosphorescent OLED materials and their adoption in next-generation devices, (2) progress on Gen 8.6 OLED fabrication plants and their impact on IT and automotive market penetration, and (3) evolving customer order patterns, especially in China and other key regions. The pace of innovation in display form factors and improvements in R&D productivity will also be important signposts.

Universal Display currently trades at $140.41, down from $144.72 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

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