Benzinga | May 7, 2021 11:01AM EDT

OLED Beats On Q1 Earnings, Issues Robust FY21 Guidance

* Universal Display Corp (NASDAQ: OLED) reported first-quarter FY21 revenue growth of 19.3% year-on-year to $134 million, beating the analyst consensus of $119.96 million.

* Revenue from material sales rose 19.9% Y/Y to $79.8 million, Royalty and license fees revenue increased 18.1% Y/Y to $50.9 million, and Contract research services revenue rose 26$ Y/Y to $3.3 million.

* Operating income rose 42.9% Y/Y to $63.6 million, with the margin expanding 780 bps Y/Y to 47.43%.

* Net income rose 35.3% Y/Y to $51.7 million, with EPS of $1.08 beating the analyst consensus of $0.79.

* Universal Display held $726.3 million in cash and equivalents and generated $29.5 million in operating cash flow.

* It announced a Q2 dividend of $0.20 per share payable on June 30, 2021.

* Guidance: OLED sees an FY21 revenue outlook of $530 million - $560 million, compared to the analyst consensus of $556.11 million.

* Universal Display extended OLED Technology License and Material Purchase Agreements with LG Display Co Ltd (NYSE: LPL) and Visionox, and was jointly establishing a new manufacturing site in Shannon, Ireland with PPG Industries Inc (NYSE: PPG) for the production of UniversalPHOLED materials, since the last earnings call, CFO, Sidney D. Rosenblatt said.

* The company has invested $700 million in R&D to advance from a start-up to a leading player in the global OLED ecosystem, Rosenblatt added.

* Price action: OLED shares are up by 0.23% at $218.74 on the last check Friday.