Corning Earnings Preview: Will it Miss? - Analyst Blog
22 Aprile 2013 - 8:30PM
Zacks
Corning Inc. (GLW)
is set to report first quarter 2013 results on Apr 24. Last
quarter, it posted a 3.03% positive surprise. Let’s see how things
are shaping up for this announcement.
Growth Factors this
Past Quarter
Corning’s sales growth rate in the
first quarter of 2013 was higher than the fourth quarter as well as
the year-ago period driven by improvement in all the revenue
segments, except the Environmental Technologies segment, which was
impacted by weakness in light duty diesel products. However, margin
expansion was limited by the significant decline in LCD glass
prices.
Glass price declines are expected
to moderate whereas glass volumes are expected to increase going
forward, which indicates improvement in Corning’s largest and most
important Display Technologies segment. Additionally, the company
saw significantly higher demand for Gorilla Glass in the last
quarter, which is quite encouraging and should help absorb costs at
the new Chinese facility.
Earnings
Whispers?
Our proven model does not
conclusively show that Corning will beat earnings this quarter.
That is because a stock needs to have both a positive Earnings ESP
(Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank #1, #2
or #3 for this to happen. That is not the case here as you will see
below.
Zacks ESP:
The Most Accurate estimate stands at 23 cents while
the Zacks Consensus Estimate is higher at 26 cents. That is a
difference of -11.54%.
Zacks Rank #3
(Hold): Corning’s Zacks Rank #3 (Hold) when combined with
a negative ESP makes surprise prediction difficult.
We caution against stocks with
Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Other Stocks to
Consider
Here are some other companies you
may want to consider as our model shows that they have the right
combination of elements to post an earnings beat this quarter:
Applied Materials,
Inc. (AMAT), Earnings ESP of +7.69% and Zacks Rank #2
(Buy)
Intersil Corp.
(ISIL), Earnings ESP of +62.5% and a
Zacks Rank #3 (Hold)
Amazon.com (AMZN),
Earnings ESP of +100.0% and Zacks Rank #3 (Hold)
APPLD MATLS INC (AMAT): Free Stock Analysis Report
AMAZON.COM INC (AMZN): Free Stock Analysis Report
CORNING INC (GLW): Free Stock Analysis Report
INTERSIL CORP (ISIL): Free Stock Analysis Report
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