Company also boosts quarterly dividend
Shares of Universal Display Corp. dipped slightly in choppy after-hours trading Wednesday after the display-technology company came up short with its full-year revenue outlook but beat top-line expectations for the most recent quarter.
The company generated fourth-quarter net income of $45.9 million, or 96 cents a share, down from $53.9 million, or $1.13 a share, in the year-prior quarter. The FactSet consensus was for $1.01 a share in GAAP earnings.
Universal Display’s OLED, -2.15% revenue rose to $146.2 million from $141.5 million, while analysts tracked by FactSet had been expecting $144.6 million. The company’s revenue total included $85.8 million from material sales, $56.0 million from royalty and license fees, and $4.5 million from contract and research services.
The company expects full-year revenue of $625 million to $650 million for 2022. Analysts tracked by FactSet were anticipating $666.1 million.
“The OLED industry remains at a stage where many variables can have a material impact on its growth, and the company thus caveats its financial guidance accordingly,” Universal Display said in its release.
The company also announced that its board of directors had approved an increase of the company’s quarterly dividend to 30 cents a share. The prior quarter’s dividend was 20 cents a share.
The dividend is payable on March 31 to shareholders of record as of March 17.
“The dividend reflects our expected continued cash flow generation, and commitment to return capital to our shareholders,” the company said in a separate release.
Shares of Universal Display have declined 10.2% over the past three months as the S&P 500 SPX, -1.84% has lost 9.7%.