The Ewing, New Jersey-based company posted net income of $37 million, or 78 cents a share, up from $22.8 million, or 48 cents a share, a year ago, and ahead of Wall Street's forecast for 58 cents. Revenue totaled $97.5 million, up from $77.6 million a year ago, and ahead of analysts' calls for $85.9 million.
Universal Display revised its full-year revenue guidance to between $400 million and $410 million.
During a conference call with analysts, Sidney Rosenblatt, chief financial officer and treasurer, said that "the strength that we saw in this quarter and expect to see in the fourth quarter is really due to customer pipeline activity."
"We don't talk about specific customers, but we are seeing strength in many areas, so -- which is what caused us to raise it," he said.
Needham analyst James Ricchiuti, who has a hold rating on the company, boosted his estimates, but advised investors to "not chase the stock at current levels." He wrote that he believes strength in materials in part reflects "both the previously disclosed pull-ins by the customer in China and strong materials sales to LG related to the startup of its new factory in China" in the second quarter.
Roth analyst Scott Searle raised his price target after Universal Display posted "another beat and raise despite headwinds from 2Q19 China pull-ins." He raised the company's price target to $216 from $206 since the earnings beat and raise underscored strong demand for Universal's material business.
He also increased his estimates for 2019 and 2020 to reflect implied fourth-quarter guidance and expected capacity additions through 2021.
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