Corning Incorporated’s (GLW - Free Report) chief financial officer, Tony Tripeny, recently provided an update to investors at the Citi 2020 Global Technology Conference. The company’s shares rallied 4.1% in yesterday’s trading, closing at $33.07.
Corning expects third-quarter 2020 sales to grow in low-teen percentage sequentially. Profitability growth is estimated to outpace sales growth as Corning’s cost-control efforts enhance operating leverage. Also, the company is on track for positive free cash flow for 2020.
In the second quarter, the company undertook multiple initiatives, including the launch of Gorilla Glass Victus and innovation with 5G industry leaders. Importantly, Corning’s Valor Glass was selected by the U.S. Department of Health & Human Services and the Department of Defense to accelerate the delivery of COVID-19 vaccines.
Corning operates on a strong financial foundation that positions it for long-term growth while adjusting to near-term conditions. The company reorganized its operating structure after extensive analysis and leadership review. Designed to unlock opportunities for valuable synergies, the structure aligns executive management and business teams around five Market-Access Platforms (MAPs) — Mobile Consumer Electronics, Optical Communications, Automotive, Life Sciences and Display.
Corning holds a leadership position in each of the markets addressed by its five MAPs. The company is likely to benefit from its investments in product development and manufacturing capacity. It is focused on its portfolio and utilizing financial strength to enhance shareholder returns. The company’s capabilities are becoming increasingly vital to diverse industries.
Of late, in the Specialty Materials segment, Corning is witnessing strong demand for premium glasses, growth in IT products due to work- and study-from-home trends as well as demand for products in the semiconductor equipment space. That said, it is facing challenges, particularly in two segments — Optical Communications and Display Technologies.
The stock has returned 42.9% in the past six months compared with 23.5% growth of the industry. The company delivered a trailing four-quarter positive earnings surprise of 39.9%, on average.
Corning carries a Zacks Rank #3 (Hold), at present.
Some better-ranked stocks in the broader industry are Turtle Beach Corporation (HEAR - Free Report) , Vocera Communications, Inc. (VCRA - Free Report) and Acacia Communications, Inc. (ACIA - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Turtle Beach delivered a trailing four-quarter earnings surprise of 41%, on average.
Vocera delivered a trailing four-quarter earnings surprise of 70%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
Acacia pulled off a trailing four-quarter earnings surprise of 17%, on average. The company’s earnings topped the consensus estimate in three of the last four quarters.
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