Back to top

Analyst Blog

Zacks Equity Research

Will Corning Inc. (GLW) Beat Earnings Estimates This Quarter?

SGMS GLW IT INVN

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Corning Inc. (GLW - Analyst Report) is set to report second quarter 2013 results on Jul 30. Last quarter, it posted a 15.0% positive surprise. Let’s see how things are shaping up for this announcement.

Growth Factors this Past Quarter

Though the company’s revenue was down both sequentially as well as from the year-ago quarter, first-quarter earnings were above the Zacks Consensus Estimate by 4 cents due to favorable currency movements and a lower tax rate.

The first quarter was strong for Corning in terms of margin growth. This was mainly because of improvements in telecom and specialty materials margin that offset the price declines in the glass business.

Corning provided a tepid outlook for the second quarter, with gross margin expected to be flat sequentially. The tax rate for the core business is expected to be 16% while core earnings is likely to be down 15% year over year (roughly 23 cents, which is well below the Zacks Consensus Estimate of 31 cents).

Earnings Whispers?

Our proven model does not conclusively show that Corning will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP (Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank #1, #2 or #3 for this to happen. That is not the case here as you will see below.

Zacks ESP:  Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 31 cents. Hence, the difference is 0.00%.

Zacks Rank #4 (Sell): We caution against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Other Stocks to Consider

Our model states that astock needs to have both a positive earnings ESP and a Zacks Rank #1, #2 or #3 to beat earnings estimates. You could, therefore, consider other stocks like: 

InvenSense Inc. (INVN - Snapshot Report), Earnings ESP of +8.33% and a Zacks Rank #2 (Buy)

Gartner Inc. (IT - Snapshot Report), Earnings ESP of +1.96% and a Zacks Rank #2 (Buy)

Scientific Games Corporation (SGMS - Analyst Report), with an ESP of +100.0% and a Zacks Rank #3 (Hold)

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.63 +6.47%
BOFL HOLDING BOFI 85.73 +5.50%
CELL THERAPE CTIC 3.14 +5.04%
RAMBUS INC RMBS 12.28 +4.13%
SHORETEL INC SHOR 8.03 +3.08%