Despite a Challenging Quarter, the Future for Universal Display Is Bright
U.S. monthly retail sales of electronics and appliances dropped more than 50% from February to April, and by June still hadn't reached pre-pandemic spending levels. This pullback impacted sales for Universal Display (NASDAQ: OLED) and handed it a significant revenue decrease for the most recent quarter. But this developer of OLED (organic light-emitting diode) technology used in high-end smartphones, televisions, and lighting solutions has seen these kinds of headwinds before, and has grown significantly over the long run despite temporary demand disruptions.
Let's take a look at Universal Display's most recent quarter, dive into why its demand can be so erratic, and discuss its long-term prospects for investors.
The headline for Universal Display's recent second-quarter 2020 results was its $58 million in revenue, which represented a 51% year-over-year decrease driven by its customers (technology device manufacturers) cutting orders. This reduced top line made it hard to offset fixed costs, and the company reported a $1.2 million operating loss.
Source Fool.com
