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Needham & Company Maintains a 'Hold' Universal Display (PANL); Strong Finish To Year; Updates Estimates

February 29, 2012 9:22 AM EST Send to a Friend
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Needham & Company maintains a 'Hold' Universal Display (NASDAQ: PANL).

Analyst, James Ricchiuti, said, "PANL after the close yesterday posted in-line Q4 revenues and stronger than expected EPS, helped in part by a one-time tax benefit. Mgmt reaffirmed its 2012 revenue guidance, although noted that the Samsung license revenue to be paid semiannually will be recorded in Q2 and Q4, which is not currently reflected in Street expectations for Q1. Meanwhile, PANL increasingly is becoming a materials revenue story, with over 60% of its revenues in 2011 coming from the sale of highmargin commercial and development chemicals. Although we expect PANL to show strong improvement in full-year profitability in 2012, we believe it could take a few quarters before Street estimates more accurately gauge the level of profitability. While PANL shares could come under some pressure at the open, we believe downside is limited, given the company’s growth prospects and strong cash position."

"We are reducing our Q1 revenue estimate to $11.7M from $21.5M and now look for a loss of $0.06 versus our prior estimate of a $0.10/share profit. We are reducing our 2012 EPS estimate to $0.56 on revenues of $97M. We are initiating a 2013 EPS estimate of $1.25 on revenues of $147.5M."

For an analyst ratings summary and ratings history on Universal Display click here. For more ratings news on Universal Display click here.

Shares of Universal Display closed at $45.68 yesterday.




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