Corning Beats, But Trades Lower

Corning Inc. (GLW) reported second-quarter results before the bell this morning. The numbers were down from last year, but still ahead of expectations.

Earnings came in at 39 cents per share, 8 cents better than the consensus. Revenues were down 18% from last year to $1.4 billion, as sales in its largest segment, display technologies, fell 17% to $673 million. Corning did record solid sales growth in its telecommunications segment, up 14% to $437 million, on strong demand for its optical fiber and cable in China.

CFO James Flaws provided some texture to the company's results, saying, "The resurgent demand for LCD glass is propelling us to restore much of our previously idled production capacity as quickly as possible to meet our customers’ needs." Looking forward, Flaws added, "As we enter the second half of the year, we are seeing signs that the impact of the global recession on our businesses may be moderating. That said, questions pertaining to the pace of economic recovery remain."

Estimates were up going into the earnings release, with the current-year climbing 8 cents in the last 30 days to $1.05. The next-year estimate is bullish, projecting 30% earnings growth.

Shares of GLW are down 4% in mid-day trading.

Read the full analyst report on GLW