Universal Display Thinks OLED Screen Manufacturing Is Still in Its Infancy
Universal Display (NASDAQ: OLED) handily beat expectations during the 2019 third quarter. There was some U.S.-China trade war worry after the last report from the patent holder and materials provider of organic light-emitting diode (OLED) screens, but the OLED movement continues to build steam and is providing a strong tailwind that's filling Universal's sails. In fact, CEO Steve Abramson said on the earnings call that his company's prediction that square meter manufacturing capacity would increase by 50% from 2017 to the end of 2019 is on track.
As a licensor of technology and seller of basic materials needed to make the OLED panels that are replacing older LED screens, Universal Display has been a big investment winner over the past few years. And if management is right, the run isn't over. Abramson and company said they expect manufacturing capacity to increase 50% again from the end of 2019 to the end of 2021.
Though OLED screen adoption has been gaining momentum, it hasn't been totally smooth sailing for Universal Display. In 2018, many manufacturers took a breather as they geared up for the next run higher. That equated to a year of sharp sales declines, and the stock followed suit.
Source Fool.com
