Universal Display (NASDAQ:OLED) missed revenue expectations in Q3 CY2025, with sales down 13.6% year on year to $139.6 million. Full-year revenue guidance of $675 million was in line with estimates. GAAP profit of $0.92 per share fell 21.6% below analysts’ expectations. Operating margin was 30.9%, down from 41.5% last year.

Despite revenue miss, Universal Display’s long-term sales grew at a solid 10.5% annually over the last five years. Its growth surpasses the average semiconductor company. However, this quarter saw a 13.6% decline in revenue, totaling $139.6 million. Analysts project a 12.1% revenue growth over the next year.

Days Inventory Outstanding (DIO) for Universal Display rose to 545 this quarter, 132 days higher than the five-year average. This suggests a growth in inventory levels. The stock price dropped 14.4% to $115.83 following these results. Considering the long-term business quality and valuation is crucial before investing in the stock.

Read more at Yahoo Finance: Universal Display (NASDAQ:OLED) Misses Q3 Analysts’ Revenue Estimates, Stock Drops 14.4%