Universal Display (PANL) Expects Strong OLED Growth, Just Not Until 2014...
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Price: $6.78 -0.59%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.2%
Revenue Growth %: +28.2%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.2%
Revenue Growth %: +28.2%
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Growth at Universal Display (Nasdaq: PANL) might b on hold for a while, but big things are expected in 2014.
According to Universal Display CFO Sidney Rosenblatt, OLED technology is expected to take off in 2014, while the company expects to continue solid gains on smartphone sales until then.
Though OLED technology offers better color and contrast, coupled with better power efficiency, cost has largely been a deterrent to OLED-equipped TVs.
Research firm Display Research sees OLED TV shipments to hit 4.8 million units in 2015, nearly doubling to 9 million units by 2016. Shipments for 2013 are only expected to be 50,000 units.
Universal Display currently draws the lions share of its revenue from Samsung, which accounted for about 68 percent of the total. Samsung had quite a run in 2012 with the Galaxy S III smartphone outselling Apple's (Nasdaq: AAPL) iPhone. Investors may want to focus on Samsung's March event, when the next-generation Galaxy smartphone, the S IV, expected to make its debut.
Analysts have been a little skeptical, Reuters noted today. Some don't expected OLED TV sales to really ramp until 2015. Universal Display's Rosenblatt said he expects the OLED TV market to rise from $6.6 billion in 2012 up to $10 billion this year.
Per usual, growth is banking on lower-costs of OLED TVs over time, similar to what backlit LED TVs and other consumer electronics go through.
Shares are flat in late trading Tuesday after rising 2.2 percent on the session.
According to Universal Display CFO Sidney Rosenblatt, OLED technology is expected to take off in 2014, while the company expects to continue solid gains on smartphone sales until then.
Though OLED technology offers better color and contrast, coupled with better power efficiency, cost has largely been a deterrent to OLED-equipped TVs.
Research firm Display Research sees OLED TV shipments to hit 4.8 million units in 2015, nearly doubling to 9 million units by 2016. Shipments for 2013 are only expected to be 50,000 units.
Universal Display currently draws the lions share of its revenue from Samsung, which accounted for about 68 percent of the total. Samsung had quite a run in 2012 with the Galaxy S III smartphone outselling Apple's (Nasdaq: AAPL) iPhone. Investors may want to focus on Samsung's March event, when the next-generation Galaxy smartphone, the S IV, expected to make its debut.
Analysts have been a little skeptical, Reuters noted today. Some don't expected OLED TV sales to really ramp until 2015. Universal Display's Rosenblatt said he expects the OLED TV market to rise from $6.6 billion in 2012 up to $10 billion this year.
Per usual, growth is banking on lower-costs of OLED TVs over time, similar to what backlit LED TVs and other consumer electronics go through.
Shares are flat in late trading Tuesday after rising 2.2 percent on the session.
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