Why Universal Display (OLED) International Revenue Trends Deserve Your Attention

Have you looked into how Universal Display Corp. (OLED) performed internationally during the quarter ending December 2024? Considering the widespread global presence of this organic light-emitting diode technology company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.In our recent assessment of OLED's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.For the quarter, the company's total revenue amounted to $162.29 million, experiencing an increase of 2.5% year over year. Next, we'll explore the breakdown of OLED's international revenue to understand the importance of its overseas business operations. Unveiling Trends in OLED's International RevenuesSouth Korea generated $92.13 million in revenues for the company in the last quarter, constituting 56.77% of the total. This represented a surprise of -1.26% compared to the $93.3 million projected by Wall Street analysts. Comparatively, in the previous quarter, South Korea accounted for $95.11 million (58.84%), and in the year-ago quarter, it contributed $87.19 million (55.07%) to the total revenue.China accounted for 40.28% of the company's total revenue during the quarter, translating to $65.37 million. Revenues from this region represented a surprise of +30.79%, with Wall Street analysts collectively expecting $49.98 million. When compared to the preceding quarter and the same quarter in the previous year, China contributed $61.37 million (37.97%) and $66.09 million (41.75%) to the total revenue, respectively.During the quarter, Japan contributed $0.6 million in revenue, making up 0.37% of the total revenue. When compared to the consensus estimate of $0.92 million, this meant a surprise of -35.22%. Looking back, Japan contributed $0.5 million, or 0.31%, in the previous quarter, and $1.8 million, or 1.13%, in the same quarter of the previous year. Revenue Forecasts for the International Markets Wall Street analysts expect Universal Display to report a total revenue of $151.23 million in the current fiscal quarter, which suggests a decline of 8.5% from the prior-year quarter. Revenue shares from South Korea, China and Japan are predicted to be 62.8%, 33.1% and 0.6%, corresponding to amounts of $94.99 million, $50.1 million and $0.86 million, respectively.For the full year, a total revenue of $665.2 million is expected for the company, reflecting an increase of 2.7% from the year before. The revenues from South Korea, China and Japan are expected to make up 60.1%, 41.7% and 1% of this total, corresponding to $399.89 million, $277.38 million and $6.82 million respectively. Key Takeaways The dependency of Universal Display on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.Currently, Universal Display holds a Zacks Rank #4 (Sell), signifying its potential to underperform the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Universal Display's Recent Stock Market Performance The stock has increased by 4.4% over the past month compared to the 0.5% fall of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes Universal Display, has decreased 3.2% during this time frame. Over the past three months, the company's shares have experienced a loss of 4.4% relative to the S&P 500's 1.4% increase. Throughout this period, the sector overall has witnessed a 1.3% increase.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Universal Display Corporation (OLED): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks