Universal Display (OLED) shares are set for a sharp decline, plummeting 15.40% in pre-market trading on Friday, following the release of disappointing third-quarter financial results and revised guidance. The OLED technology leader's after-hours performance on Thursday has carried over into the pre-market session, reflecting investor concerns about the company's near-term growth prospects.

The significant drop comes after Universal Display reported Q3 earnings per share of $0.92, falling well short of the FactSet consensus estimate of $1.21. Revenue for the quarter also disappointed, coming in at $139.6 million, missing analyst expectations of $164.15 million by nearly 15%. The company attributed the revenue shortfall to changes in customer mix and a $9.5 million out-of-period adjustment in royalty and license fees. Material sales also experienced a slight decrease due to lower unit material volume and changes in customer mix.

Adding to investor concerns, Universal Display revised its 2025 revenue guidance to the lower end of its previous forecast range of $650 million to $700 million. This adjustment, coupled with the Q3 performance, has raised questions about the company's growth trajectory in the competitive OLED technology market. Despite these challenges, Universal Display maintained its quarterly dividend at $0.45 per share, payable on December 31 to shareholders of record as of December 17. As the market opens, investors will be closely watching for any further developments and potential analyst reactions to gauge the long-term implications of these results on Universal Display's market position.