Earnings on Tap: Corning
Continued weakness in LCD prices could likely offset volume growth.
Continued weakness in LCD prices could likely offset volume growth.
Corning (GLW) releases its latest results Wednesday before the bell. Wall Street is expecting earnings to come in lower this quarter, the consensus estimate being $0.33 per share compared with $0.51 per diluted share reported in the year-ago quarter.
Corning is a leading producer of glass panels for LCDs used in computer monitors, flat-panel televisions, and smaller consumer electronics devices. In the second quarter, the company posted earnings of $0.30 per share, citing ongoing economic turbulences in Europe and slumping growth in China. Apart from lower demand, declining LCD prices and higher taxes also weighed on its performance.
For the third quarter, the company expects LCD glass volume for its wholly owned business as well as its 50%-owned subsidiary, Samsung Corning Precision, to grow in the low double digits amid rising demand for tablet computers and larger TV sizes.
Morningstar analyst Grady Burkett thinks even though demand would continue to grow over the long run, largely driven by emerging markets, ongoing price declines would offset volume growth.
Shares of the company have risen more than 3% since the start of the year and are presently trading near Burkett's fair value estimate.
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