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Will Revenue Decline Dent Corning's (GLW) Q1 Earnings?
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Corning Incorporated (GLW - Free Report) is set to report its first-quarter 2024 results on Apr 30, before the opening bell. It delivered a trailing four-quarter earnings surprise of 0.12% on average. In the last reported quarter, the communication components provider missed the Zacks Consensus Estimate by a penny.
The advanced glass substrates producer is likely to witness a top-line contraction year over year, owing to demand softness in several end markets. Supply chain corrections and macroeconomic challenges are headwinds. However, initiatives to boost profitability and cash flow are positive factors.
Factors at Play
During the quarter, Corning announced that Samsung Electronics has opted to deploy its latest Gorilla Armor cover material in Samsung’s flagship Galaxy S24 Ultra devices. The state-of-the-art cover material is the most optically advanced Gorilla Glass, offering remarkable durability and enhanced visual experience to end users.
Management is taking various initiatives to improve productivity across operations. A strong focus on strengthening profitability and improving cash flow generation is a positive. These developments will likely have a favorable impact on first-quarter results.
However, a lower panel maker utilization is expected to hurt net sales in the Display Technologies vertical. Our revenue estimate for the Display Technologies vertical is pegged at $807.5 million, suggesting 5.8% year-over-year growth, down sequentially. Declining fiber shipments due to lower demand from carriers and inventory correction will likely weigh on net sales in Optical Communications. Our revenue estimate is pegged at $896.6 million, implying a 20.3% year-over-year decline.
Despite signs of market recovery, sales in the Life Science vertical are expected to remain weak as customers continue to adjust inventory levels in Europe and North America. Our estimate for revenues from this vertical is pegged at $226.2 million, suggesting a decrease from $256 million in the year-ago quarter. Revenues from Specialty Materials are pegged at $416 million, suggesting growth of 2.5% year over year.
For the March quarter, the Zacks Consensus Estimate for revenues is pegged at $3.12 billion, indicating a decline from the year-ago quarter’s figure of $3.37 billion. The consensus estimate for adjusted earnings per share is pegged at 36 cents, suggesting a decrease from the year-ago quarter’s tally of 41 cents.
Earnings Whispers
Our proven model predicts a likely 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 exactly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.40%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Corning has a Zacks Rank #2 at present.
Other Stocks to Consider
Here are some other companies you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:
United States Cellular Corporation (USM - Free Report) is scheduled to report quarterly numbers on May 2. It has an Earnings ESP of +36.36% and sports Zacks Rank of 1.
The Earnings ESP for Silicon Motion Technology (SIMO - Free Report) is +5.96%, and it has a Zacks Rank of 2. The company is scheduled to report quarterly numbers on May 2.
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Will Revenue Decline Dent Corning's (GLW) Q1 Earnings?
Corning Incorporated (GLW - Free Report) is set to report its first-quarter 2024 results on Apr 30, before the opening bell. It delivered a trailing four-quarter earnings surprise of 0.12% on average. In the last reported quarter, the communication components provider missed the Zacks Consensus Estimate by a penny.
The advanced glass substrates producer is likely to witness a top-line contraction year over year, owing to demand softness in several end markets. Supply chain corrections and macroeconomic challenges are headwinds. However, initiatives to boost profitability and cash flow are positive factors.
Factors at Play
During the quarter, Corning announced that Samsung Electronics has opted to deploy its latest Gorilla Armor cover material in Samsung’s flagship Galaxy S24 Ultra devices. The state-of-the-art cover material is the most optically advanced Gorilla Glass, offering remarkable durability and enhanced visual experience to end users.
Management is taking various initiatives to improve productivity across operations. A strong focus on strengthening profitability and improving cash flow generation is a positive. These developments will likely have a favorable impact on first-quarter results.
However, a lower panel maker utilization is expected to hurt net sales in the Display Technologies vertical. Our revenue estimate for the Display Technologies vertical is pegged at $807.5 million, suggesting 5.8% year-over-year growth, down sequentially. Declining fiber shipments due to lower demand from carriers and inventory correction will likely weigh on net sales in Optical Communications. Our revenue estimate is pegged at $896.6 million, implying a 20.3% year-over-year decline.
Despite signs of market recovery, sales in the Life Science vertical are expected to remain weak as customers continue to adjust inventory levels in Europe and North America. Our estimate for revenues from this vertical is pegged at $226.2 million, suggesting a decrease from $256 million in the year-ago quarter. Revenues from Specialty Materials are pegged at $416 million, suggesting growth of 2.5% year over year.
For the March quarter, the Zacks Consensus Estimate for revenues is pegged at $3.12 billion, indicating a decline from the year-ago quarter’s figure of $3.37 billion. The consensus estimate for adjusted earnings per share is pegged at 36 cents, suggesting a decrease from the year-ago quarter’s tally of 41 cents.
Earnings Whispers
Our proven model predicts a likely 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 exactly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.40%. 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 #2 at present.
Other Stocks to Consider
Here are some other companies you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:
Qualcomm Incorporated (QCOM - Free Report) is set to release quarterly numbers on May 1. It has an Earnings ESP of +0.11% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
United States Cellular Corporation (USM - Free Report) is scheduled to report quarterly numbers on May 2. It has an Earnings ESP of +36.36% and sports Zacks Rank of 1.
The Earnings ESP for Silicon Motion Technology (SIMO - Free Report) is +5.96%, and it has a Zacks Rank of 2. The company is scheduled to report quarterly numbers on May 2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.