Diamonds and Dogs
Universal Display (OLED) looking brighter. The supplier of materials and technology for OLED displays and lighting is up 16% as earnings beat expectations even as revenue fell 39.5% to $70.14 million. The earnings improved due to new accounting standards, new license agreement and customer inventory pre-purchases a year ago. Management also suggested a dramatic return to growth this year as its flagship OLED technology continues to expand its reach. Board of Directors approved an increased first quarter cash dividend of $0.10 per share on the Company's common stock, up from the previous quarter's dividend of $0.06 per share.
A bad day for Kraft Heinz (KHC). The consumer goods maker known for Kraft and Oscar Mayer brands is down 24% following disappointing earnings, a 35% cut to the dividend, a $15 billion intangible asset write-down for some of their more popular brands and a SEC investigation into their accounting practices. Other than that, the company is doing great. Kraft is facing slowing growth and the changing tastes of consumers, who have been shunning older, established brands for newer hipper products, cheaper private label brands and non-processed food. Heinz bought Kraft Foods in 2015, to create the world's fifth largest food and beverage company. These big mergers don't seem to work.