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Will Higher Revenues Drive Corning's (GLW) Q1 Earnings?
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Corning Incorporated (GLW - Free Report) is scheduled to report first-quarter 2022 results on Apr 26, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 5.9%.
Corning is expected to have recorded year-over-year higher aggregate revenues driven by growth in Optical Communications, Display Technologies and Specialty Materials businesses.
Factors at Play
During the quarter, Corning launched a glass composition to advance the development of augmented and mixed reality (AR/MR) diffractive waveguides for wearable devices. Corning’s Advanced Optics business delivers high-quality glass that has been designed to meet customer needs with end-to-end solutions, enabling advancements in the AR/MR market. The 2.0 high-index glass joined the company’s AR/MR portfolio, which includes high-index compositions of 1.8 and 1.9.
West Pharmaceutical Services, Inc. announced a supply and technology agreement with Corning. The collaboration includes a multi-million dollar investment to expand Corning’s Valor Glass technology to enable advanced injectable drug packaging and delivery systems for the pharmaceutical industry.
The Zacks Consensus Estimate for the Optical Communications segment’s net sales is pegged at $1,200 million. The figure indicates a rise of 28.1% from the year-ago quarter’s reported figure. The higher projection implies sales growth in enterprise and carrier networks, driven by 5G, broadband and cloud computing.
The consensus estimate for Display Technologies sales is $904 million, which indicates a rise of 4.8% year over year. The performance is likely to have resulted from the favorable glass pricing environment.
The consensus estimate for Specialty Materials sales is $534 million, which indicates a rise of 18.4% year over year. The performance is likely to have been driven by strong sales of premium cover materials.
The consensus estimate for Environmental Technologies sales is pegged at $355 million, which suggests a decline of 19.5%. The decline is a result of lower production levels in the automotive industry due to the semiconductor chip shortage.
The consensus estimate for Life Sciences sales stands at $307 million, which implies an increase from $300 million reported a year ago. This reflects increased demand to support the global pandemic response, recovery in research labs and strong demand for bioproduction vessels and diagnostic-related consumables.
For the March quarter, the Zacks Consensus Estimate for revenues is pegged at $3,578 million, which indicates growth of 9.7% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share stands at 49 cents, which suggests a rise of 8.9%.
What Our Model Says
Our proven model doesn’t predict an earnings beat for Corning this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Corning’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -2.83%, as the former is pegged at 48 cents and the latter at 49 cents.
Zacks Rank: Corning currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Bunge Limited (BG - Free Report) is scheduled to release first-quarter 2022 results on Apr 27. Bunge has an Earnings ESP of +10.74% and a Zacks Rank #2.
Helmerich & Payne, Inc. (HP - Free Report) has an Earnings ESP of +8.14% and a Zacks Rank #2. Helmerich & Payne is set to report second-quarter fiscal 2022 results on Apr 27.
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Will Higher Revenues Drive Corning's (GLW) Q1 Earnings?
Corning Incorporated (GLW - Free Report) is scheduled to report first-quarter 2022 results on Apr 26, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 5.9%.
Corning is expected to have recorded year-over-year higher aggregate revenues driven by growth in Optical Communications, Display Technologies and Specialty Materials businesses.
Factors at Play
During the quarter, Corning launched a glass composition to advance the development of augmented and mixed reality (AR/MR) diffractive waveguides for wearable devices. Corning’s Advanced Optics business delivers high-quality glass that has been designed to meet customer needs with end-to-end solutions, enabling advancements in the AR/MR market. The 2.0 high-index glass joined the company’s AR/MR portfolio, which includes high-index compositions of 1.8 and 1.9.
West Pharmaceutical Services, Inc. announced a supply and technology agreement with Corning. The collaboration includes a multi-million dollar investment to expand Corning’s Valor Glass technology to enable advanced injectable drug packaging and delivery systems for the pharmaceutical industry.
The Zacks Consensus Estimate for the Optical Communications segment’s net sales is pegged at $1,200 million. The figure indicates a rise of 28.1% from the year-ago quarter’s reported figure. The higher projection implies sales growth in enterprise and carrier networks, driven by 5G, broadband and cloud computing.
The consensus estimate for Display Technologies sales is $904 million, which indicates a rise of 4.8% year over year. The performance is likely to have resulted from the favorable glass pricing environment.
The consensus estimate for Specialty Materials sales is $534 million, which indicates a rise of 18.4% year over year. The performance is likely to have been driven by strong sales of premium cover materials.
The consensus estimate for Environmental Technologies sales is pegged at $355 million, which suggests a decline of 19.5%. The decline is a result of lower production levels in the automotive industry due to the semiconductor chip shortage.
The consensus estimate for Life Sciences sales stands at $307 million, which implies an increase from $300 million reported a year ago. This reflects increased demand to support the global pandemic response, recovery in research labs and strong demand for bioproduction vessels and diagnostic-related consumables.
For the March quarter, the Zacks Consensus Estimate for revenues is pegged at $3,578 million, which indicates growth of 9.7% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share stands at 49 cents, which suggests a rise of 8.9%.
What Our Model Says
Our proven model doesn’t predict an earnings beat for Corning this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Corning’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -2.83%, as the former is pegged at 48 cents and the latter at 49 cents.
Corning Incorporated Price and EPS Surprise
Corning Incorporated price-eps-surprise | Corning Incorporated Quote
Zacks Rank: Corning currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Hess Corporation (HES - Free Report) is slated to release first-quarter 2022 results on Apr 27. Hess has an Earnings ESP of +10.25% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bunge Limited (BG - Free Report) is scheduled to release first-quarter 2022 results on Apr 27. Bunge has an Earnings ESP of +10.74% and a Zacks Rank #2.
Helmerich & Payne, Inc. (HP - Free Report) has an Earnings ESP of +8.14% and a Zacks Rank #2. Helmerich & Payne is set to report second-quarter fiscal 2022 results on Apr 27.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.