Is Corning Durable?

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E = Equity to Debt Ratio Is Strong

The debt-to-equity ratio and balance sheet for Corning are strong.

Debt-To-Equity

Cash

Long-Term Debt

GLW

0.16

$6.35 Billion

$3.40 Billion

TEL

0.47

$1.59 Billion

$3.71 Billion

MOLX

0.90

$702.08 Million

$225.07 Million

 

T = Technicals on the Stock Chart Are Mixed

Corning hasn’t performed well over the past few years, and it has been outperformed by TE Connectivity (NYSE:TEL) and Molex Incorporated (NASDAQ:MOLX). However, if odds were being drawn up for the next three years, Corning would be the favorite.

1 Month

Year-To-Date

1 Year

3 Year

GLW

0.80%

0.16%

-4.03%

-32.05%

TEL

3.59%

0.16%

16.92%

57.88%

MOLX

4.89%

3.62%

17.99%

42.00%

 

At $12.63, Corning is currently trading above its 50-day and 100-day SMA, and slightly below its 200-day SMA.

50-Day SMA

12.13

100-Day SMA

12.36

200-Day SMA

12.67

 

E = Earnings Have Been Inconsistent

2010 was a good year for Corning, and it looked as though business would continue to improve. However, 2011 was a disappointment. While everyone was down on the company at that time, revenue still grew at a solid pace. As long as there is revenue growth, there is potential for EPS growth. The point here is that 2011 shouldn’t be looked at as a complete failure. If anything, it might have been a necessary setup for the future.

2007

2008

2009

2010

2011

Revenue ($)in billions

5.86

5.95

5.40

6.63

7.89

Diluted EPS ($)

1.34

3.32

1.28

2.25

1.77

 

When we look at last quarter on a YoY basis, we see a decrease in revenue and earnings. However, this shouldn’t be cause for concern.

9/2011

12/2012

3/2012

6/2012

9/2012

Revenue ($)in billions

2.08

1.89

1.92

1.91

2.04

Diluted EPS ($)

0.51

0.32

0.30

0.30

0.35

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