Analyst Note| Mark Cash |
Corning increased its core sales 2% sequentially, generated solid free cash flow, and improved its bottom line in the second quarter. While year-over-year comparisons are less favorable, we believe that Corning is on the cusp of showcasing positive traction amid challenging spending environments across its business sectors. Corning expects to grow sales and profits sequentially but decided to not provide guidance. We expect demand to slowly ramp back up through the back half of the year, followed up by a strong 2021, and for recent restructuring efforts to start providing margin expansion. In turn, we are maintaining our $27 fair value estimate for this narrow-moat name.