Corning Incorporated

Corning Incorporated (GLW - Analyst Report) just declared a quarterly dividend of 5 cents per share, noting that it is payable September 30 to holders of record on August 31. The company offers an industry-leading dividend yield of 1.3%.

Company Description

Corning makes specialty glass and ceramics. The creates components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences.

Corning’s products include glass substrates for LCD televisions, computer monitors and laptops; ceramic substrates and filters for mobile emission control systems; optical fiber, cable, hardware & equipment for telecommunications networks; optical biosensors for drug discovery; and other advanced optics and specialty glass solutions for a number of industries including semiconductor, aerospace, defense, astronomy and metrology.

Solid Income

The company just declared a quarterly dividend of 5 cents per share, noting that it is payable September 30 to holders of record on August 31. Corning offers an industry-leading dividend yield of 1.3%.

Another Increase in the Forecast of LCD Volume

In late June, the company again upped its second-quarter sequential volume of LCD glass. Corning said it expects volume to grow 100% at its wholly owned business. Previously, the company anticipated 50% growth followed by a projection of a 75% increase.

Higher Earnings Estimates

Wall Street analysts have been raising earnings forecasts. The current full-year estimate of $1.06 per share was increased by 2 cents in just the past week. Last month, the Street was projecting earnings of 95 cents.

For the second quarter, earnings expectations of 30 cents are above the 1 month-ago estimates of 25 cents.

Second-quarter earnings are scheduled for release on July 27.

Strong Results in the First Quarter

For the first-quarter, Corning posted earnings per share of 10 cents, which lagged the year-prior 44 cents but jumped ahead of the consensus estimate by 67%.

Management said it saw continued worldwide retail strength of LCD TV sales throughout the first quarter, and the company was pleased to see demand for its glass pick up sooner than anticipated, noting that this was an indication that the display supply chain contraction was ending. Management said such factors contributed to stronger-than-expected sales and earnings performance the quarter.

Solid Fundamentals

Corning boasts a return on equity (ROE) of 14%, well ahead of the industry average that shows a negative ROE. Corning’s net profit margin of 80% also compares favorably to a negative industry average.

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