We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Modest Revenue Growth Improve Corning's (GLW) Q2 Earnings?
Read MoreHide Full Article
Corning Incorporated (GLW - Free Report) is set to report its second-quarter 2024 results on Jul 30, before the opening bell. It delivered a trailing four-quarter earnings surprise of 0.22% on average. In the last reported quarter, the company reported an earnings surprise of 5.56%.
The advanced glass substrates producer is likely to witness revenue growth year over year, owing to healthy demand in multiple verticals, including mobile consumer electronics, generative AI applications, automotive and more. A strong emphasis on strengthening profitability and improving cash flow is a tailwind. Emerging markets of automotive glass solutions and pharmaceutical packaging hold promise.
Factors at Play
During the quarter, Corning has expanded its industry-leading cover glass portfolio by introducing the Corning Gorilla Glass 7i. The product boasts advanced glass technology that delivers improved drop protection and scratch resistance compared to competitive lithium aluminosilicate glasses. With this launch, the company is striving to enhance its market presence in the mid-range, affordable smartphone vertical.
In the second quarter, the National Institute for Bioprocessing Research and Training, a prominent institute for biopharmaceutical manufacturing research, has opted to deploy Corning’s state-of-the-art Ascent Fixed Bed Bioreactor systems in its Ireland-based facility. These developments will likely have a favorable impact on upcoming results.
The company is witnessing strong demand for its optical product suite for generative AI applications. Normalization of inventory levels is expected to have propelled carrier customers to increase purchasing to support deployment rates. Our revenue estimate for the optical communication segment is pegged at $950.8 million, down 10.8% year over year, but indicating market recovery with modest sequential growth.
Higher panel maker utilization and recovery in PC demand will likely drive growth in the Display Technologies segment. Our revenue estimate is pegged at $930.3 million, suggesting marginal growth from the prior-year quarter’s level of $928 million.
Our revenue estimate for the Specialty Materials segment stands at $478.1 million, indicating strong 13% year-over-year growth. Revenues from Environmental Technologies are projected at $460.1 million.
For the June quarter, the Zacks Consensus Estimate for revenues is pegged at $3.49 billion, indicating modest growth from the year-ago quarter’s figure of $3.48 billion. The consensus estimate for adjusted earnings per share is pegged at 46 cents, suggesting an increase from the year-ago quarter’s tally of 45 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 +1.59%. 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 #1 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:
The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +2.66%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Aug 1.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +1.72%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Jul 30.
Image: Bigstock
Will Modest Revenue Growth Improve Corning's (GLW) Q2 Earnings?
Corning Incorporated (GLW - Free Report) is set to report its second-quarter 2024 results on Jul 30, before the opening bell. It delivered a trailing four-quarter earnings surprise of 0.22% on average. In the last reported quarter, the company reported an earnings surprise of 5.56%.
The advanced glass substrates producer is likely to witness revenue growth year over year, owing to healthy demand in multiple verticals, including mobile consumer electronics, generative AI applications, automotive and more. A strong emphasis on strengthening profitability and improving cash flow is a tailwind. Emerging markets of automotive glass solutions and pharmaceutical packaging hold promise.
Factors at Play
During the quarter, Corning has expanded its industry-leading cover glass portfolio by introducing the Corning Gorilla Glass 7i. The product boasts advanced glass technology that delivers improved drop protection and scratch resistance compared to competitive lithium aluminosilicate glasses. With this launch, the company is striving to enhance its market presence in the mid-range, affordable smartphone vertical.
In the second quarter, the National Institute for Bioprocessing Research and Training, a prominent institute for biopharmaceutical manufacturing research, has opted to deploy Corning’s state-of-the-art Ascent Fixed Bed Bioreactor systems in its Ireland-based facility. These developments will likely have a favorable impact on upcoming results.
The company is witnessing strong demand for its optical product suite for generative AI applications. Normalization of inventory levels is expected to have propelled carrier customers to increase purchasing to support deployment rates. Our revenue estimate for the optical communication segment is pegged at $950.8 million, down 10.8% year over year, but indicating market recovery with modest sequential growth.
Higher panel maker utilization and recovery in PC demand will likely drive growth in the Display Technologies segment. Our revenue estimate is pegged at $930.3 million, suggesting marginal growth from the prior-year quarter’s level of $928 million.
Our revenue estimate for the Specialty Materials segment stands at $478.1 million, indicating strong 13% year-over-year growth. Revenues from Environmental Technologies are projected at $460.1 million.
For the June quarter, the Zacks Consensus Estimate for revenues is pegged at $3.49 billion, indicating modest growth from the year-ago quarter’s figure of $3.48 billion. The consensus estimate for adjusted earnings per share is pegged at 46 cents, suggesting an increase from the year-ago quarter’s tally of 45 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 +1.59%. 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 #1 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:
Pinterest (PINS - Free Report) is set to release quarterly numbers on Jul 30. It has an Earnings ESP of +7.14% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +2.66%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Aug 1.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +1.72%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Jul 30.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.