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S&P 500 (NYSE:SPY) component Corning (NYSE:GLW) will unveil its latest earnings on Wednesday, October 24, 2012. Corning provides glass for LCD televisions, computer monitors, and other information display applications as well as optical fiber and cable products.
Corning Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for net income of 32 cents per share, a decline of 33.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 36 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 32 cents during the last month. Analysts are projecting profit to rise by 27.8% versus last year to $1.27.
Past Earnings Performance: Last quarter, the company missed estimates by one cent, coming in at profit of 31 cents per share versus a mean estimate of net income of 32 cents per share. In the first quarter, the company beat estimates by 2 cents.
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A Look Back: In the second quarter, profit fell 38.8% to $462 million (30 cents a share) from $755 million (47 cents a share) the year earlier, missing analyst expectations. Revenue fell 4.8% to $1.91 billion from $2 billion.
Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price rose $2.60 (23.3%), from $11.14 to $13.74. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 11, 2012, when shares rose for eight straight days, increasing 10.3% (+$1.34) over that span. It saw one of its worst periods between July 3, 2012 and July 16, 2012 when shares fell for nine straight days, dropping 6.3% (-83 cents) over that span.
Wall St. Revenue Expectations: Analysts predict a decline of 2.9% in revenue from the year-earlier quarter to $2.02 billion.
The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 53% in the fourth quarter of the last fiscal year, by 38.2% in the first quarter and again in the second quarter.
On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 0.2% in the first quarter and dropped again in the second quarter.
Analyst Ratings: There are 12 out of 19 analysts surveyed (63.2%) rating Corning a buy. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 4.96 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 5.5 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 6.2% to $1.89 billion while assets decreased 4.3% to $9.38 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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