We’ve come to take for granted that our smartphones and tablets will have quality glass displays that will be scratch resistant, break-resistant and touch responsive. And that’s exactly what Corning GLW promises with its glass substrates.
And that isn’t all; the company also offers fiber optics for communications networks, auto products for environmental compliance and other glass products for life science applications.
The Optical Communications business remains the strongest for the company at the moment. The segment has grown year over year in each of the past 12 quarters and now comprises 29% of revenue. The recently-acquired AOFP business has cloud presence, so it brings attractive growth opportunity to Corning, particularly given the increasing data flow through mobile and IoT devices that are constantly communicating with the cloud and each other. Other advantages include its presence in Asia and the scope for cost synergies.
Management is on track to generate $20 billion of cash through 2019, half of which will be returned to shareholders with the remainder going back into the business. They also completed an accelerated share repurchase program in January, returning $1.25 billion to shareholders and increased the dividend by 12.5%.
Corning shares have appreciated around 13% since the company reported first-quarter results. The valuation is however reasonable at 15.95X forward earnings, lower than the communications component supplier industry, which is currently 87.40X. Ditto for the PEG of 2.13X, meaning that the shares are currently undervalued.
On the glass side of things, Corning is behind the displays in TVs, smartphones, etc. Receding inventory and stabilizing prices in the LCD TV market are positives for this business. It also offers cover glass in the form of Gorilla Glass and is expanding applications for this technology.
While June quarter estimates moved down slightly after the company reported March quarter numbers they have been stable after that in the last seven days indicating rising confidence. Additionally, the company has a good track record: it has met or exceeded estimates in each of the last four quarters at an average rate of 2.24%.
The shares carry a Zacks Rank #1 (Strong Buy).
We have highlighted some of the key details from the just-released announcement below:
Earnings: Corning surpassed earnings estimates. The Zacks Consensus Estimate called for EPS of 32 cents and the company’s core earnings adjusted for one-time pre-tax expenses/income came tin higher at 37 cents per share.
Revenue: Corning beat on revenues, which at $2.44 billion was well ahead of the Zacks Consensus Estimate of $2.36 billion.
Key Stats: Sales from Display Technologies and Life Sciences segment came in higher over the prior-year quarter, though it dropped for Specialty Materials and Optical Communications.Environmental Technologies revenues remained flat year-over-year.
Stock Price: Shares were up 3.96% in the pre-market session at 8:16 AM ET.
Check back for our full write up on this GLW earnings report later!
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Corning (GLW) Beats on Q2 Earnings and Sales
We’ve come to take for granted that our smartphones and tablets will have quality glass displays that will be scratch resistant, break-resistant and touch responsive. And that’s exactly what Corning GLW promises with its glass substrates.
And that isn’t all; the company also offers fiber optics for communications networks, auto products for environmental compliance and other glass products for life science applications.
The Optical Communications business remains the strongest for the company at the moment. The segment has grown year over year in each of the past 12 quarters and now comprises 29% of revenue. The recently-acquired AOFP business has cloud presence, so it brings attractive growth opportunity to Corning, particularly given the increasing data flow through mobile and IoT devices that are constantly communicating with the cloud and each other. Other advantages include its presence in Asia and the scope for cost synergies.
Management is on track to generate $20 billion of cash through 2019, half of which will be returned to shareholders with the remainder going back into the business. They also completed an accelerated share repurchase program in January, returning $1.25 billion to shareholders and increased the dividend by 12.5%.
Corning shares have appreciated around 13% since the company reported first-quarter results. The valuation is however reasonable at 15.95X forward earnings, lower than the communications component supplier industry, which is currently 87.40X. Ditto for the PEG of 2.13X, meaning that the shares are currently undervalued.
On the glass side of things, Corning is behind the displays in TVs, smartphones, etc. Receding inventory and stabilizing prices in the LCD TV market are positives for this business. It also offers cover glass in the form of Gorilla Glass and is expanding applications for this technology.
While June quarter estimates moved down slightly after the company reported March quarter numbers they have been stable after that in the last seven days indicating rising confidence. Additionally, the company has a good track record: it has met or exceeded estimates in each of the last four quarters at an average rate of 2.24%.
The shares carry a Zacks Rank #1 (Strong Buy).
We have highlighted some of the key details from the just-released announcement below:
Earnings: Corning surpassed earnings estimates. The Zacks Consensus Estimate called for EPS of 32 cents and the company’s core earnings adjusted for one-time pre-tax expenses/income came tin higher at 37 cents per share.
Revenue: Corning beat on revenues, which at $2.44 billion was well ahead of the Zacks Consensus Estimate of $2.36 billion.
Key Stats: Sales from Display Technologies and Life Sciences segment came in higher over the prior-year quarter, though it dropped for Specialty Materials and Optical Communications.Environmental Technologies revenues remained flat year-over-year.
Stock Price: Shares were up 3.96% in the pre-market session at 8:16 AM ET.
Check back for our full write up on this GLW earnings report later!
CORNING INC Price
CORNING INC Price | CORNING INC Quote
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