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Will Revenue Decline Impact Corning's (GLW) Q4 Earnings?
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Corning Incorporated (GLW - Free Report) is set to report fourth-quarter 2023 results on Jan 30, before the opening bell. It delivered a trailing four-quarter earnings surprise of 2.45% on average. The advanced glass substrates producer is likely to witness a revenue decline year over year owing to soft demand trends and inventory adjustments in the Optical Communication segment. Weakness in Display Technologies and Life Science verticals is also a major concern. However, management’s effort to improve productivity is a positive factor.
Factors at Play
During the quarter, Corning collaborated with AUO Corporation to facilitate the development of large-format curved automotive display modules utilizing Corning ColdForm technology. Corning’s solution enables AUO to shape the car displays at room temperature, offering a cost and energy-efficient way compared to legacy hot-forming methods. Through this collaboration, Corning is aiming to capitalize on this evolving demand of global automakers and establish itself as a major player in advancing automotive glass solutions. This will likely have a positive impact on fourth-quarter results.
However, management expects that weak demand for fiber, cable and connectivity solutions will hinder revenues from the Optical Communications vertical. Our estimate for revenues from the Optical Communications vertical is pegged at $819.8 million, indicating a 31.4% decline year over year.
Lower panel maker utilization may impact net sales in the Display Technologies segment. However, our estimate for revenues stands at $923.7 million, suggesting 18% year-over-year growth. Our estimate for revenues from the Specialty Materials and Environmental Technologies is pegged at $519.8 million and $399.2 million, respectively.
For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $3,256 million, indicating a decline from the year-ago quarter’s figure of $3,633 million. The consensus estimate for adjusted earnings per share is pegged at 40 cents, suggesting a decrease from the year-ago quarter’s tally of 47 cents.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Corning this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for NVIDIA Corporation (NVDA - Free Report) is +3.68% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 28.
The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +1.46% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 1.
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Will Revenue Decline Impact Corning's (GLW) Q4 Earnings?
Corning Incorporated (GLW - Free Report) is set to report fourth-quarter 2023 results on Jan 30, before the opening bell. It delivered a trailing four-quarter earnings surprise of 2.45% on average. The advanced glass substrates producer is likely to witness a revenue decline year over year owing to soft demand trends and inventory adjustments in the Optical Communication segment. Weakness in Display Technologies and Life Science verticals is also a major concern. However, management’s effort to improve productivity is a positive factor.
Factors at Play
During the quarter, Corning collaborated with AUO Corporation to facilitate the development of large-format curved automotive display modules utilizing Corning ColdForm technology. Corning’s solution enables AUO to shape the car displays at room temperature, offering a cost and energy-efficient way compared to legacy hot-forming methods. Through this collaboration, Corning is aiming to capitalize on this evolving demand of global automakers and establish itself as a major player in advancing automotive glass solutions. This will likely have a positive impact on fourth-quarter results.
However, management expects that weak demand for fiber, cable and connectivity solutions will hinder revenues from the Optical Communications vertical. Our estimate for revenues from the Optical Communications vertical is pegged at $819.8 million, indicating a 31.4% decline year over year.
Lower panel maker utilization may impact net sales in the Display Technologies segment. However, our estimate for revenues stands at $923.7 million, suggesting 18% year-over-year growth. Our estimate for revenues from the Specialty Materials and Environmental Technologies is pegged at $519.8 million and $399.2 million, respectively.
For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $3,256 million, indicating a decline from the year-ago quarter’s figure of $3,633 million. The consensus estimate for adjusted earnings per share is pegged at 40 cents, suggesting a decrease from the year-ago quarter’s tally of 47 cents.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Corning this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Corning Incorporated Price and EPS Surprise
Corning Incorporated price-eps-surprise | Corning Incorporated Quote
Zacks Rank: Corning has a Zacks Rank #3.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
InterDigital, Inc. (IDCC - Free Report) is set to release quarterly numbers on Feb 15. It has an Earnings ESP of +1.93% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here
The Earnings ESP for NVIDIA Corporation (NVDA - Free Report) is +3.68% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 28.
The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +1.46% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.