Shares of Universal Display Rise on Solid Samsung S6 Sales - Analyst Blog

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Shares of computer peripherals producer Universal Display Corp. OLED jumped 4.14% touching a high of $49.42, before closing a notch lower at $48.59, after strong Samsung Galaxy S6 sales.

Samsung Electronics, a leading multinational electronics company, officially released the Samsung Galaxy S6 and its curved-edge alternative, the Galaxy S6 Edge for sale on Apr 10 across the globe including South Korea, Europe, the United States and in the Asia-Pacific markets such as Australia, Singapore and India.

Both devices got a strong reception and as per The Korea Times’ report, Samsung will hit the milestone of selling 10 million Galaxy S6 and Galaxy S6 edge units by early May. Samsung has not released its own sales figures, but it’s clear that no other Galaxy S model has experienced such popularity with consumers in such a short span of time. Sales of this flagship duo are already rocketing above the sales of any previous Galaxy S device. Even pre-orders and online pre-sales of the devices had surpassed its predecessors. So the target of 10 million looks easily achievable.

Samsung Galaxy S5, launched last year received a lukewarm response and in the end, it led to a poor sales year for the company, leading to sliding profits. But in case of the Galaxy S6 and Galaxy S6 Edge, Samsung is confident that both can create a new sales record and get the company back in form.

The fate of these devices decides the fate of suppliers as well. Universal Display has long claimed that Samsung Display is its single largest customer, given the application of its OLED materials in Samsung's popular high-end Galaxy smartphones. If those high-end smartphones dont fare well, Universal Display's most significant revenue stream stands to suffer as well.

So Universal Display suffered when Galaxy S5 didn’t do well and the popularity of the latest duo should be good news for the company. The Galaxy S6 has a 5.1-inch Super AMOLED display from Universal, which is one of the finest features of the screen.

Universal Display (UDC) is an organic light-emitting diode (OLED) research company, and one of the pioneers in the space. OLEDs are solid-state devices made of thin films of organic molecules that generate light with the use of electricity. OLEDs can offer brighter, crisper displays on electronic devices and are more power-efficient than traditional light-emitting diodes (LEDs) or liquid crystal displays (LCDs) used today.

Universal Display currently has a Zacks Rank #3 (Hold). Other better-ranked companies in the industry include Kyocera Corp. KYO, Mobileye N.V. MBLY and TDK Corp. TTDKY, all sporting a Zacks Rank #1 (Strong Buy).


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