Have you evaluated the performance of Universal Display Corp.'s (OLED) international operations during the quarter that concluded in September 2024? Considering the extensive worldwide presence of this organic light-emitting diode technology company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.

The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

Our review of OLED's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The recent quarter saw the company's total revenue reaching $161.63 million, marking an improvement of 14.6% from the prior-year quarter. Next, we'll examine the breakdown of OLED's revenue from abroad to comprehend the significance of its international presence.

Unveiling Trends in OLED's International Revenues

Of the total revenue, $0.98 million came from Other Countries during the last fiscal quarter, accounting for 0.60%. This represented a surprise of +16.07% as analysts had expected the region to contribute $0.84 million to the total revenue. In comparison, the region contributed $0.27 million, or 0.17%, and $0.54 million, or 0.38%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, South Korea contributed $95.11 million in revenue, making up 58.84% of the total revenue. When compared to the consensus estimate of $102.22 million, this meant a surprise of -6.96%. Looking back, South Korea contributed $108.19 million, or 68.26%, in the previous quarter, and $87.23 million, or 61.83%, in the same quarter of the previous year.

China generated $61.37 million in revenues for the company in the last quarter, constituting 37.97% of the total. This represented a surprise of +5.93% compared to the $57.93 million projected by Wall Street analysts. Comparatively, in the previous quarter, China accounted for $45.24 million (28.54%), and in the year-ago quarter, it contributed $48.69 million (34.51%) to the total revenue.

Japan accounted for 0.31% of the company's total revenue during the quarter, translating to $0.5 million. Revenues from this region represented a surprise of -66.01%, with Wall Street analysts collectively expecting $1.48 million. When compared to the preceding quarter and the same quarter in the previous year, Japan contributed $1.26 million (0.79%) and $2.02 million (1.43%) to the total revenue, respectively.

Prospective Revenues in International Markets

Wall Street analysts expect Universal Display to report a total revenue of $158.28 million in the current fiscal quarter, which suggests a decline of 0% from the prior-year quarter. Revenue shares from Other Countries, South Korea, China and Japan are predicted to be 0.6%, 69.9%, 35.8% and 0.9%, corresponding to amounts of $0.97 million, $110.63 million, $56.63 million and $1.41 million, respectively.

Analysts expect the company to report a total annual revenue of $636.4 million for the full year, marking an increase of 10.4% compared to last year. The expected revenue contributions from Other Countries, South Korea, China and Japan are projected to be 0.6% ($4.08 million), 61.2% ($389.45 million), 38.7% ($246.13 million) and 1.1% ($6.89 million) of the total revenue, in that order.

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 era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.

At present, Universal Display holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Exploring Recent Trends in Universal Display's Stock Price

Over the past month, the stock has seen a decline of 14.9% in its value, whereas the Zacks S&P 500 composite has posted an increase of 0.4%. The Zacks Computer and Technology sector, Universal Display's industry group, has ascended 2.1% over the identical span. In the past three months, there's been an increase of 6.9% in the company's stock price, against a rise of 5.5% in the S&P 500 index. The broader sector has increased by 5.5% during this interval.

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