Universal Display (NASDAQ: OLED) reported Q2 EPS of $0.46, $0.04 worse than the analyst estimate of $0.50. Revenue for the quarter came in at $64.4 million versus the consensus estimate of $68.68 million.

“Our second quarter 2016 revenues and net income increased year-over-year, and we maintained our strong margin profile. We are confident that the underlying growth fundamentals of our long-term outlook remain robust, but near-term, we expect our revenue growth will be delayed by about six months,” said Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display.

Rosenblatt continued, “We expect strong revenue growth in 2017. At that time, new OLED production from the multi-year capital expenditure cycle is slated to start contributing to our revenues. Ahead of this wave of high-volume capacity, we have been working to expand and broaden our team and core competencies to advance our strategic initiatives and increase our competitive edge. We expect these initiatives, along with new OLED capacity, coupled with our pipeline of new materials, new technologies and new agreements, to bolster our long-term growth plan.”

GUIDANCE:

Universal Display sees FY2016 revenue of $190-200 million, versus the consensus of $217.9 million.

"While the OLED industry is still at a stage where many variables can have a material impact on its growth, based upon the most recent and best information on hand, the Company believes it is prudent to revise its 2016 revenues guidance."

For earnings history and earnings-related data on Universal Display (OLED) click here.