The Future of the OLED industry is Looking Bright: Universal Display Corporation (NASDAQ:OLED) Beats Earnings & Raises Guidance

Picture this: You're setting up for the big game this afternoon when you unroll your ten foot wide, razor thin television. Sounds like science fiction, right? Wrong. Even though the technology is still in its infancy, displays such as these are already being tested by manufacturers like LG Display Company (NASDAQ:LPL). OLED technology can created displays that are thinner and more energy efficient, all while staying within an attractive price range for electronics manufacturers. And if the monumental growth of Universal Display Corporation (NASDAQ:OLED) is any indication, the future of the OLED industry is looking bright. 

On Friday, May 5th, Universal Display Corporation (NASDAQ:OLED) closed up a whopping 23% following an earnings beat posted after hours on Thursday. The supplier of technology and materials for OLED displays reported a total revenue increase of 87% ($55.6 million) in the first quarter of 2017, compared to the $29.7 million reported for the first quarter of 2016. The revenue increase was attributed to higher material sales as well as royalty and license fees.

It doesn't take a rocket scientist to understand why OLED displays are the latest craze. Visit your local Best Buy (NYSE:BBY) retail store and compare a television manufacturer's traditional LCD model to it's flagship OLED model. OLED displays are thinner, more energy efficient, and look astonishingly better than LCDs. The technology is already being adopted by mobile phone manufacturers. The Apple Inc. (NASDAQ:AAPL) iPhone 8 is expected to be released later this year in three variations with it's flagship model believed to use a curved 5.2" OLED screen.

"As we look forward, we believe that the OLED industry is poised to grow faster than earlier expectations this year. We are therefore raising our 2017 revenue guidance range to at least $260 million to $280 million, reflecting year-over-year growth of 30% to 40%. Additionally, we are pleased to announce that the Board of Directors approved a second quarter dividend of $0.03 per share,” said Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display Corporation.

Universal Display Corporation (NASDAQ:OLED) traded 4,866,441 shares Friday, surpassing its average volume of 801,317 shares.